Assumable Edge

Unbeatably low cost homes for sale

42 followers

Unbeatably low cost homes for sale

42 followers

Assumable Edge is a daily newsletter featuring properties with assumable mortgages. With an assumable mortgage, the buyer of a property can assume, or take over, the mortgage of the seller. Many of these properties can have mortgage rates as low as 2%.

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Assumable Edge

Maker

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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.

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3yr ago

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

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3yr ago

Assumable Edge

Maker

@narendra_solanki Unfortunately for now all homes featured are just in the US. That's for a couple reasons - 1) most of the sites I use that aggregate listings from the MLS (e.g. Zillow or Redfin) just feature homes in the US and some areas of Canada; and 2) each country has different rules and regulations for mortgages. At this point I think it would get a bit too complicated to feature properties outside the US, although as the newsletter grows I certainly think it would be a great idea to have an offering that caters to a wider audience than just US home buyers.

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3yr ago