3% mortgage rates aren't dead-housing market sees 127% increase in buyers taking over old loans
Briefly

Homebuyers are increasingly opting for assumable mortgages to avoid high mortgage rates of 6% and 7%. By assuming a seller's existing loan, buyers may save considerably on monthly payments. FHA, VA, and USDA loans typically offer this option, though they only make up a small percentage of the market. There has been a notable increase in the number of assumed FHA loans, with projections indicating continued growth in the coming years. Challenges persist, such as the requirement for mutual agreement between buyer and seller, and the need for substantial upfront payments depending on the sale price.
Homebuyers are increasingly using assumable mortgages to bypass high interest rates, allowing them to take over existing loans that may be at much lower rates, significantly enhancing affordability.
FHA, VA, and USDA loans can generally be assumed, yet only around one in six mortgages currently meet these criteria. Assumables are slowly growing in popularity as buyers seek alternatives to expensive contracts.
From fiscal years 2021 to 2024, the number of FHA-insured mortgage assumptions increased significantly, showcasing a 127% rise since 2021 and a continued upward trend expected through 2025.
Buyers interested in assumable mortgages need to manage various challenges, including the necessity of agreeing upon the transfer with sellers and the potential need for significant upfront costs.
Read at Fast Company
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