Compare Apples to Apples
Don't compare:
Seller's old total payment
against
a random online mortgage calculator.
Instead compare principal and interest on the same approximate debt amount and then separately account for:
- Mortgage insurance
- Taxes
- Homeowners insurance
- HOA
- Equity-gap financing
Illustrative Example
For illustration only, not market data
Imagine $400,000 of debt.
For illustration only, suppose one scenario carries a materially lower existing rate than the new financing available to the buyer.
The payment difference on $400,000 can be substantial.
Now imagine only $100,000 of the purchase is assumable.
The advantage affects far less debt.
Remaining balance is almost as important as interest rate.
Build a Calculator
The website includes an:
ASSUMABLE MORTGAGE SAVINGS CALCULATORIt compares estimated assumed-loan principal and interest, the new-loan alternative, the equity gap, any secondary payment, the combined estimated payment, and the illustrative monthly, annual and 5-year differences.
For educational estimates only. Actual rates, payments, mortgage insurance, taxes, insurance, fees and qualification vary. Financing depends on credit, income, assets, debt, property, lender and loan-program requirements. No approval or savings is guaranteed.
How Lisa Helps
Once the numbers show that an assumption could matter, Lisa can search specifically for properties where that strategy may be available.
If the math works, let Lisa search for homes where the mortgage works too.
The servicer determines assumption qualification and confirms the actual loan terms. Lisa is a Nevada REALTOR® who searches properties and structures the real estate side.
