Making Assumptions Happen with PointRite
In today’s market, lower mortgage rates are still possible. We make the assumable mortgage process easier. The assumption process can be daunting, but with PointRite we turn the challenges into wins and help our clients get to the finish line with their loan assumption opportunities. We work with local realtors and brokers to ease the assumption process and bring the expertise to get it done.
Your Local Coach to Assume a Low Rate Home.
Why PointRite? Because assumptions can help.
A loan assumption for a home is a process in which the buyer of a property takes over the seller's existing mortgage. Instead of obtaining a new loan, the buyer assumes responsibility for the remaining balance, interest rate, and terms of the seller's original mortgage. This can be beneficial for both the buyer and the seller under certain conditions.
Loan assumptions can be a positively strategic option in a real estate transaction, offering benefits under the right circumstances and qualifications. Buyers and sellers can consult with Point Rite to understand the specific implications and ensure a smooth process.
We are here to coach you through it all.
The 1-2-3 of How it Works
1. Approval from Lender
The buyer must qualify for the existing loan terms and get approval from the lender. The lender will assess the buyer's creditworthiness and financial situation, like the process for a new mortgage application.
2. Transfer of Responsibility
Once approved, the lender transfers the mortgage responsibility from the seller to the buyer. The buyer will then start making payments on the existing mortgage.
3. Equity Payment
If the home's current market value is higher than the remaining loan balance, the buyer might need to pay the seller the difference (equity). This is often done through a separate loan or cash payment.