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Rainmaker
5,360,346
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

I would think the assumable would be the way to go.....the closing costs would be minimal....plus 8 years of interest saved....

Aug 09, 2015 03:57 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Get an opinion from a lender who does not have any skin in this.

Mar 03, 2018 10:17 PM
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

I'd say this depends entirely on the new loan type - if the client uses a current market mortgage, would it be conventional or FHA?  If FHA, the permanence of the PMI will offset the lower rate benefit.  If conventional, this makes the options more interesting and probably wise to include their financial advisor re: retirement.  Mortgage debt is good debt - if the monthly savings from a 30 year loan at current rates would allow them to plan for the future better, then I'd suggest that route.  If that side of it doesn't matter and they're happy with the payments of the current loan (and they can get rid of the PMI if there's any left on there), then the assumable loan could be a good option, too.

Aug 09, 2015 09:53 AM
Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Encourage her to talk to another lender and ask the first lender to lay out. The total interest payments over the next 22 years

Aug 09, 2015 08:38 AM
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

That's a tough one. The length of time the buyer expected to live there would also need to be considered. If it was less than 5 I would say definitely assumption. 

Aug 09, 2015 04:01 AM
Rainmaker
657,198
Sara Wagner
The Woodland Companies - Adams, WI
Stevens Point Rentals

Have to examine her goals and do the math.

Oct 28, 2018 05:10 PM
Rainmaker
1,543,577
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Thanks all. There are a few more questions I will send my buyer to discuss with the lender.  Thanks again!

Aug 09, 2015 09:49 AM
Rainmaker
453,524
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

At first glance, the new one with a lower interest rate. But, most likely the assumable one has just a few more years of mortgage insurance premium whereas the new one would have the MIP for the entire 30 years. To make the best decision is to calculate the principal and interest and the MIP for each scenario.   

Aug 09, 2015 09:15 AM
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

The rate is higher than current rate by a significant amount.  They can make extra payment a year and knock the length of the new loan down easily.  Reason most buyers go with FHA is low down payment.  This doesn't sound as if that is the scenario here.

Aug 09, 2015 07:11 AM
Rainmaker
291,980
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

What's the principal remaining on the assumable loan and does the buyer have enough  down payment to cover loan amount and purchase price ? If not then a new fha loan would be better.

Aug 09, 2015 06:13 AM
Rainmaker
4,798,711
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would need to see the breakdown, but I'm guessing a new mortgage would be a better option and just add a little to the principal payments to make it pay off even quicker.

Aug 09, 2015 04:19 AM