February 15th, 2013 10:49 AM by Jill Kohler
Did you know some mortgages are assumable? This means that the seller of the home has the ability to transfer their mortgage to the new buyer. Both FHA and VA loans have this feature, and as interest rates rise in the coming years, these types of loans could make homes with these loans more desirable. The buyer will still have to be credit worthy. Some FHA and VA loans, the transfer process is streamlined in comparison to get an entirely new loan. In some cases an appraisal wouldn’t be necessary, therefore reducing the overall cost of the new loan. With rates presumably going to rise in the next few years, we will see assumable loans becoming more popular. It’s definitely something that is worth being aware of if you are purchasing a home or refinancing your property.