I explain how you can work with your agent to assume a 4% rate, including finding a list of suitable properties, crafting the right offer, and more.

Want to buy a home but don’t want to deal with higher interest rates? I get it; despite a lot of noise about the Federal Reserve lowering interest rates recently, the fact remains that rates are currently much higher than they were a few years ago, when receiving a 4% or even 3% rate was possible. However, there is a way to get that 4% rate, even today: Assumable mortgages. Assuming someone else’s mortgage with a lower rate can save you thousands over the course of your loan, but the process can be a little tricky. That’s why today, I’m sharing how you can assume someone’s mortgage in three steps. 

1. Have your agent find a list of potential mortgages. Your agent should have access to tax records and mortgage information that will allow them to find out which homeowners in an area purchased their house when rates were lower. They can create a list of mortgages in this area that you would want to assume. From there, you need to confirm that a seller’s mortgage is actually assumable before going forward. For example, most VA loans are assumable, but not many conventional loans are. You also need to qualify for whatever loan you want to assume, so make sure you work closely with your agent to ensure you have a list of quality leads.

“Work with your agent to make sure you qualify for the mortgage.”

2. Negotiate a deal that works for everyone. If a seller lets you assume their mortgage, they’ll probably want something in return. As long as you’re working with a good agent, this can work out for everyone. For example, your seller might ask for a higher price, but you’ll still get that low 4% interest rate. This will end up saving you tons of money in the long run, so the upfront cost is almost always worth it. 

3. Be patient. It’s exciting to find an assumable mortgage with a lower rate, but you still need to be patient. It can take two or even six months for the assumption to go through, and your lender still needs to make sure you qualify before moving forward. For example, if you want to assume a VA loan, you need to be a qualifying veteran. 

While finding an assumable loan with a lower interest rate can be tricky, it can end up saving you tons of money in the long run. If you’re interested in this option, call or email me, and I’ll send you a list of potentially assumable mortgages in your area. I look forward to hearing from you!