What is an assumable mortgage? An assumable mortgage is an agreement where a home buyer takes over the existing mortgage of the seller as long as the lender of the mortgage approves with an assumable mortgage.
The seller of the property remains secondarily liable for payment of the mortgage unless they are released in writing by the lender with an assumption. The buyer could save a significant amount on closing costs and perhaps assume a lower interest rate by assuming the seller’s mortgage.
Also Read: Is Bridge Loan Right For You?
The buyer keeps the existing interest rate on the seller’s mortgage. Also in an assumption, the buyer has to come up with a considerable amount of cash for the seller at closing. Typically the difference between the mortgage balance and the sale price.
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One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.
