Explore assumable-rate mortgages for a lower interest rate in this market.

Homebuyers are always looking for options that can lower our rates or monthly payments. Today, I’ll talk to you about a couple of options that buyers can explore to get lower rates.

Assumable-rate mortgages are making a comeback, giving buyers access to lower interest rates, especially with the rates we’re at today. We currently have a few listings under this option with rates lower than 4%. However, there are a lot of caveats to it, depending on the seller and mortgage type. 

Buyers must still qualify for the mortgage, and you want to check whether both the buyer's and seller’s timelines align. For example, last year, the processing time for Chase Bank took six months. Rocket Mortgage has a more standard procedure of a 30-day underwriting process and cloning, while others may take anywhere between 60 and 90 days. 

“Assumable-rate mortgages are making a comeback, giving buyers access to lower interest rates.”

Aside from the timeline, consider that buyers may need cash to cover the difference between the assumed amount and the purchase price. Let’s say that a property is priced at $500,000 with a $300,000 assumable mortgage. It means that buyers will assume $300,000, but you need to have cash available to make up that difference. Every situation is unique and needs to be examined individually. Right now, the market is softening, with sellers becoming more motivated and open to negotiations. 

If an assumable-rate mortgage is not for you, there are also a lot of down payment assistance programs available, like Hometown Heroes. Sellers may also offer closing cost assistance or buydown options. There are a lot more options for buyers and creative ways for sellers to sell their houses in the current market. If you want to know what other options are available, call me at (407) 499-8993 or send me an email. I’ll be happy to assist you.