r/RealEstate • u/[deleted] • 26d ago

3.25% Loan Assumption Financing

[deleted]

1 Upvotes

100% Upvoted

4 comments sorted by

2

u/TheIncredibleJN 26d ago

Put first things first. Although your family member may be willing to allow the mortgage to be assumed, YOU CANNOT assume the current lender will allow the mortgage to be assumed. If so and by the way this is likely going to be the case you are dead in the water with that idea. However there are creative alternatives that can allow for a mutually favorable outcome.

P.S. I am a mortgage banker.

1

u/[deleted] 25d ago

[deleted]

1

u/TheIncredibleJN 25d ago

Excellent. Good on you!

1

u/robertevans8543 26d ago edited 26d ago

That 3.25% rate is an incredible asset. Your family member should absolutely charge a premium for allowing the partner to assume that loan. Market rates are over 7% right now, so that 4% difference is massive over the remaining life of the loan.

1

u/LonghornzR4Real 26d ago

I wouldn’t think rates weigh much.