What Is an Assumable Mortgage?

An assumable mortgage allows the buyer to buy the seller’s home by “assuming” (aka taking over) the seller’s mortgage. When you assume a seller’s mortgage, you’re assuming all of their monthly payments and liability.

Which Mortgage Loans Are Assumable?

Not all loans are alike. Some loans are not assumable. In fact, any conventional mortgage with a due-on-sale clause is prohibited from loan assumption.

When Does It Make Sense for a Seller to Transfer a Mortgage?

Transferring a mortgage gives the seller an edge when the loan has a lower interest rate than the going market rate. This could make the sale an easier process than usual, and the property could go for a higher selling price because of the lower interest rate.

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How Mortgages Work

How To Assume a Mortgage

The home buying process can be long and challenging, but an assumable mortgage could make things faster and easier for both the buyer and the seller. Mortgage assumption gives sellers an edge while saving buyers on interest and closing costs. It’s not right for everyone, but it could make closing on a home shorter than...

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30-Year Mortgage Rate History Explored

When you’re looking at home mortgages, most lenders will list their 30-year fixed-rate mortgage right at the top. How popular is it? Well, according to statistical data from the Federal Housing Finance Agency (FHFA), on new residential mortgages between 1998 and 2020, an average of 69.4% of mortgages were 20- and 30-year fixed-rate mortgage loans....

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What Is Mortgage Underwriting?

When you apply for a loan to buy a home, lenders use mortgage underwriting to decide if they want to do business with you. During this process, your personal and financial information is evaluated to determine whether you can afford the loan. It’s the last step in the application process. Ideally, it ends with a...

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30-Year Mortgage: Today’s Rates Explained

The 30-year fixed-rate mortgage has been one of the most popular ways that homeowners in America have financed new home purchases. What is this mortgage mainstay’s secret of success? Is it the right option for you when you buy? What if you want to refinance? Read on to find out more. How Does a 30-Year...

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Closing Costs: What the Heck Are They and How Much Will I Pay on My Home?

Just when you thought you learned everything you needed to learn about buying a home, you come face-to-face with one of the last pieces of the process: closing costs. In a 2020 survey of REALTORS®, the National Association of REALTORS® reported that 25% of people ready to buy weren’t fully educated on closing costs. Handing...

Gift Money for Down Payments: How Can I Properly Use It?

Home buying can be a challenging experience for a variety of reasons. One of the biggest challenges for home buyers is saving up enough money to cover a down payment. Maybe that’s why a study from the National Association of REALTORS® (NAR) found that in 2019 more than 32% of first-time home buyers got a...

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What Is Escrow and How Can It Help You Buy a Home?

Escrow is the safe third party that holds the money until all the red tape is done. Chrishell Stause, Selling Sunset As you dip into the home buying waters, you may hear the term “escrow” being thrown around. As a homeowner, you’ll typically be set up with a mortgage escrow account, which will serve you...

First-Time Buyers Should Avoid Common Mortgage Mistakes

First-time homebuyers may not necessarily understand how complicated the mortgage process is. Beware these common mistakes.