Should You Consider Buying or Selling a Home with an Assumable Mortgage in San Antonio?

Are you thinking about buying a home in San Antonio? Traditionally, high mortgage rates can make monthly payments a burden. This blog post explores an option that can save you money: assuming an existing mortgage. We’ll also discuss the benefits for sellers.

What is an Assumable Mortgage?

An assumable mortgage allows a qualified buyer to “take over” the seller’s existing loan. This means you inherit the original interest rate, which can be significantly lower than current rates.

Let’s Look at an Example

The video uses a house priced at $391,000 with a VA loan. At a current 7.5% interest rate, the monthly payment would be $1,739.55. However, by assuming a mortgage with a 3.5% interest rate, the payment drops to $1,456. That’s a difference of nearly $300 a month!

Benefits for Buyers

• Lower monthly payment: This can free up money for other expenses or allow you to qualify for a larger home.
• Potentially lower down payment: Sellers may be willing to accept a lower down payment to offset the benefit of the assumable mortgage.

Benefits for Sellers

• Sell faster: A home with an assumable mortgage can be more attractive to buyers, especially in a competitive market.
• Get full asking price: Sellers may not need to reduce the price as much to entice buyers.

Finding Assumable Mortgages in San Antonio

The video mentions texting a code to find a list of homes with assumable mortgages. There may also be real estate agents who specialize in these types of properties.

Is an Assumable Mortgage Right for You?

Assuming a mortgage can be a great way to save money on a home purchase. However, it’s important to consult with a lender to ensure you qualify for the loan. There may also be fees associated with assuming a mortgage.

Additional Considerations

• Not all mortgages are assumable. FHA, VA, and USDA loans are typically assumable, but conventional loans may not be.
• There may be limitations on the buyer’s credit score and income.

Want to Learn More?

The video above mentions additional resources to find out more about assumable mortgages in San Antonio. Be sure to subscribe to the channel for more real estate tips!