Buying with Loan Assumptions

Whenever you have a chance to buy any real estate by assuming an existing loan, your probably should do it. In most cases, loan assumptions can save you thousands of dollars. The older the loan, the more money you will save.

With many commercial properties and select residential properties, a loan assumption can be an advantageous alternative to a standard purchase. The loan assumption is an ideal alternative for prospective home buyers and real estate investors currently unable to qualify for sufficient mortgage financing.

In a way, a loan assumption is similar to buying a used mortgage loan. Unlike a used car, however, a mortgage loan doesn't receive the usual wear-and-tear or depreciation, as the mortgage deed and promissory note are only paper. If anything, the wear-and-tear is on the interest charges due on the loan.

The special treasure offered by assumed mortgages is that they offer buyers built-in appreciation, since a great deal of the interest that the loan will incur throughout its entire term have already been prepaid.

This introduction to loan assumptions is divided into four categories:

Overview of assumptions

Benefits of assumptions

Limited availability

Beware of unofficial assumptions

First Time Home Buyers Guide

First Time Home Buyers Guide

If you are getting ready to purchase your first home or if you think you can't afford to purchase your first home, don't make another move until you have read this important information! Every year, Federal, State and Local government and community development programs help thousands of people obtain there first home.

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