Assumable Edge

The motivation for starting this newsletter was my own frustrating home buying experience over the past year. With interest rates significantly above where they had been for many years, and with home prices at record highs, homes have become particularly unaffordable. For a $416K home (which is the median cost of a house in the US), with a 20% down payment, the monthly mortgage payment is about $1,650 at a 2.5% interest rate, while at a 7% interest rate, that payment is about $2,770. What I was unaware of when I started my home buying search, and what many others are unaware of, is that some mortgages can be assumed. In other words a buyer of a home can take over the mortgage of the seller. If the seller bought that home in 2021 and locked in a 2.5% interest, the buyer of that home can keep that interest rate. Many mortgages do not offer this feature and it's not hard to see why - would a lender rather be stuck with a 2.5% rate for 30 years or be able to recoup that capital and lend it out at a much higher interest rate? I research several different markets across the US and find homes that do in fact have this feature. Since the vast majority of homes for sale do not have assumable mortgages, they can be tough to find. My hope is that I can bring value to people by compiling listings that do have assumable mortgages into a daily email. If people are getting value from this I will look to include more listings per day (currently I send 2 per day but want to send 5-10), and will look for ways that readers can see homes in geographies that are most relevant to them. There can be difficulties with loan assumptions (e.g. the process can move more slowly than a normal mortgage underwriting), but if done right, the cost savings can be enormous. If you've made it this far, I appreciate your reading and welcome any feedback you may have.

Best of luck, John & Assumable Edge Team. Congratulations on your Launch 🚀!

Assumable Edge is a fresh approach to property buying! Are there any geographical restrictions on the properties you feature?