As noted in the preceding example, an assumed loan translates into a shorter term for the buyer—without the higher payments of standard short-term loans. During times of high interest rates, assumptions can often be a gold mine of low rates.
The assumption may have a lower interest rate than currently available or, if it is an ARM loan, it has rate caps that will NOT allow the rate to increase over current rates.
Even if the loan's rate are not advantageous, remember that you will not have a full 30-year loan with an assumption, as the seller has already been making payments for a number of years.
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This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.