This is something we’ve not thought about for years and it may make your house worth more to a buyer. Do you have a lower interest rate on a assumable loan? For many years the interest rates were steady within a point of the last few years or going down. Why assume a loan at 4% when I can get a new one at 3.75%. But that changed VERY rapidy. In the last year we have seen rates rise from 3% to over 6%. First thing is first: What kind of loan do you have?
- VA, FHA and USDA mortgages all carry a qualifying assumable clause, which means any owner-occupant buyer can qualify using the same standard the loan was issued under with the existing mortgage servicer. Investors cannot assume these loans.
- VA loans can be assumed by both veterans and non-veterans. Veteran-to-veteran assumptions allow the buyer to substitute their VA entitlement onto the loan and release the seller
