The Three Numbers That Matter Most
Do not get hypnotized by the rate.
Start with:
- Existing interest rate.
- Remaining mortgage balance.
- Seller's equity gap.
A 2.75% rate sounds incredible.
But if only $100,000 remains on a $700,000 home, a buyer still needs to solve approximately $600,000.
Conversely, a $500,000 remaining balance at a favorable rate on a $600,000 property could be much more useful.
These are illustrative numbers only, used to show why the balance and the gap matter as much as the rate. The actual value of any assumption depends on current financing and the specific loan.
Think About Time Too
A lower rate becomes more valuable when you expect to hold the property longer.
If you plan to sell quickly, the savings may not justify additional complexity.
Don't Forget the Property
Never buy the wrong house because it has the right mortgage.
Condition, location, resale, HOA, insurance, schools where relevant to the buyer, property history and lifestyle fit still matter.
Lisa's Role
Lisa can help answer the question the spreadsheet cannot:
Is this actually a good house at a good price?
The mortgage can make a good property more attractive. It should not make a bad property look good.
Only the servicer can confirm whether a buyer qualifies to assume a specific loan, and whether assumption is actually available. Lisa is a Nevada REALTOR® who evaluates the property, the market and the financing opportunity; she does not approve assumptions.
