This is how assumable loans can benefit both buyers and sellers.

In the ever-evolving world of real estate, opportunities often come in unexpected forms. Today, I had the privilege of sitting down with Mike Roberts of Cobalt Mortgage and UMe Assumption Specialists to explore one such opportunity – assumable loans. In this discussion, we'll uncover the hidden potential of these loans and why they matter in the current market.

There is a slew of bad information out there about ‘assumptions’, so let's start by setting the record straight. As Mike Roberts adeptly explained, these are not the dubious wraps, subject to, contract for deed, or other ‘creative financing’ loans that have been a topic of controversy. True assumable loans are entirely legitimate and mandated by the government. Assumptions are an undeniable win-win, offering substantial benefits for both buyers and sellers. A buyer takes over the rate and terms of the seller’s current mortgage and the seller is removed from the loan and all liability moving forward.

Let's dive deeper into the concept of an assumable loan as a valuable asset. 

If your loan carries an interest rate below current market rates (approximately 8.00% as of this blog), your loan in an asset. A lower interest rate translates into a lower payment for potential buyers, making your property all the more appealing, marketable and valuable.

“In the ever-evolving world of real estate, opportunities often come in unexpected forms.”

In the current real estate landscape, where the market has adopted a more leisurely pace, assumable loans take on newfound significance. Buyers are actively seeking homes with lower payments, and assumable loans provide an ideal solution. Buyers can either acquire homes with lower payments or potentially step up to higher-priced properties while keeping their payments stable. It's a win-win proposition.

For sellers, the advantages of having an assumable loan are substantial. The lower payments associated with assumable loans attract buyers more swiftly, often resulting in more competitive offers. Remarkably, many sellers and even listing agents may not fully grasp the appeal of assumable loans in today's market. If you hold an FHA or VA loan, your loan might be assumable, offering you access to faster sales and potentially better prices.

This illuminating conversation with Mike Roberts spotlights the untapped potential of assumable loans in today's real estate landscape. If you're contemplating a property purchase or sale, I encourage you to reach out to your Good Company Real Estate agent today for more information. Don't let this opportunity to leverage assumable loans slip through your fingers in an ever-changing market.

If you want to learn more about assumable loans or need help with your real estate goals, call or email me. I’m always happy to help.