Assumable Mortgage Possibilities for You
Monday, August 14th, 2006When you think of an assumable mortgage, think in terms of two possibilities, namely:
•An assumable First Mortgage for anywhere from 75 to 90 percent of the purchase price of the property. With a motivated seller, you might even get a 100 percent mortgage - giving you a zero-cash deal.
•An assumable Purchase Money Mortgage for anywhere from 10 to 25 percent of the purchase price of the property.
There’s more good news for you on assumable mortgages, namely:
The lender cannot raise the interest rate on any mortgage you assume. Thus, the rate the seller is paying on the mortgage will be the rate you will pay.
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