This means that a buyer keeps the seller’s repayment period, mortgage balance and, notably, the seller’s lower mortgage rate.
Securing that ultra-low mortgage rate means that Harper will save thousands of dollars in monthly payments.
“I just decided I wanted to see how low I could pay on the interest rate,” Harper said.
And while the mortgage rate on the second loan may be high, the total monthly payment could still be lower — if the assumed mortgage rate is low enough.
Snagging a low mortgage rate like Harper’s in today’s high interest rate environment may seem like a dream come true to some prospective homebuyers, but the process is not always smooth sailing.
Persons:
”, Ted Tozer, Ginnie Mae —, Tozer, Ellen Harper, Harper, “, ” Harper, ” Tozer, homebuyers, he’d, Raunaq Singh
Organizations:
CNN, of Housing, Urban, Urban Institute, Intercontinental Exchange, Federal Housing Administration, US Department of Veterans Affairs, Realtors
Locations:
Georgia, Georgia , Arizona , Colorado , Texas, Florida