Example of Details for Purchasing a Home with an Assumable Mortgage

Example of Details for Purchasing a Home with an Assumable Mortgage

May 1, 2024

In this blog, we will provide more details on the numbers regarding how purchasing a home with an  assumable mortgage works. In most cases, plan to have 10% down. Some homes may require a second mortgage unless you bring more cash to the table.

 

An example:

Home for sale (as of April, 2024) with an interest rate of 2.99% and the Loan Details Sheet below, shows the comparison if this home were assumed at that rate the monthly principal & interest payment is $1,789 then compared to 7.25% interest the payment would be $2,698 (plus the taxes $231).

 

Attached is an Assumption Fee Worksheet that shows the costs involved.  There is no appraisal, and no title insurance, although the transactions have to be closed by a title company who has a closing fee.

 

Click Here for Assumption Fee Worksheet: https://shorturl.at/qrCD1

 

This is a great way to buy a home, whether you are looking for investment properties or wanting a primary residence.  I really don’t see any downside to this, except the time to get the approval from the loan servicing company once the assumption processor packages it up. It could be 45-90 days compared to a conventional loan of 30 days, but the savings is definitely worth it.

 

I’m happy to set up a call and talk further. Ask me for the link to my website with over 800 homes available.

 

Click Here for Loan Comparison Sample: https://shorturl.at/qzCQ1

 

 

Deanna Peters, Realtor

HomeSmart Elite Group

480.250.5675

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Deanna Peters, REALTOR
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