0
Can the person who is making the mortgage payments assume the mortgage from the original borrowers without any difficulty?
Wiki User
∙ 14y ago
You would have to ask the bank with whom you want to get the mortgage with. Some loans do have an assumption feature that allows this, but not many. And assumptions are never a good idea for the seller. You need to go through a property purchase transaction or execute contract for deed so that you can complete that and in future gain ownership of the property. ____________ Actually - FHA, VA, and some Conventional ARMs are ASSUMABLE. The assumption does require some qualification but you can actually take over the existing terms, conditions, payment, and rate of the existing loan and purchase the home. ________________________________________________________________________
The existing mortgage would have to be assumable in order for someone to take over the mortgage loan in there name without changing the terms of the initial agreement with the lender. FHA mortgages are the most popular form of assumable mortgages.
'''An assumable mortgage is defined by the seller of a home having the ability to transfer their mortgage loan to the new buyer. Before taking over the mortgage loan, the lender of the assumable mortgage will require the buyer to be credit worthy and will execute its due diligence by underwriting the mortgage loan again with the new buyer's credit history being reviewed.''' An assumable mortgage is especially beneficial when mortgage rates are as low as they are today. For example, if a borrower gets a mortgage today, then decides to sell their home in five years, rates can potentially be in the 8% range. '''The assumability of a mortgage will make the home more marketable by allowing the seller to offer any potential buyers a mortgage rate in the 4%-5% range.''' An assumable mortgage is also valuable because it is far less expensive when compared to the costs of a new loan. One example of the cost savings within an FHA assumable mortgage is because an appraisal is not required. In addition to the cost savings, the process is streamlined, allowing for a basic credit check to determine a borrower's income is adequate enough to support the mortgage loan. So if you're looking to purchase a home, an FHA assumable loan makes the most sense, now and in the future. I hope this information helps. Best of luck!
Regards,
Total Mortgage
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
If 2 people cosign as borrowers for a mortgage how can you get one person off the mortgage if they aren't making any payments?
The only way to remove a borrower from a mortgage is to refinance the mortgage.
What services are offered by a reverse mortgage lender?
A reverse mortgage lender allows people to receive monthly payments and not have to pay back any of the money until the home is sold or all the borrowers passes on.
Why are refinance rates lower than new mortgage rates?
Because new borrowers may have no history of making payments while in a re-fi the bank knows the borrower made their payments reliably.
How hard is it to get approved for a 15 year mortgage?
In order to get a 15 year mortgage you need to have good credit. You must also be able to pay the larger monthly payments without any difficulty. Getting a approved for a 15 year mortgage is not difficult as long as you have good credit and can afford the payments.
If your lender sells your loan to another lender are they suppose to notify you that your mortgage was sold?
Yes, do not send anything to anyone who claims to have purchased the mortgage. Continue to send payments to the original mortgage company until THEY inform you otherwise. There is a scam out there where people get the mortgage information from county records then send an official looking letter. It's good for one or two mortgage payments to a mail drop and you end up being out a couple payments. Don't fall for that one. If you have any questions, contact your original mortgage company and verify the mortgage status
What is Mortgage EMI Sleeping PeriodMortgage EMI Sleeping Period offers mortgage borrowers a break from making mortgage EMI payments, It allows borrowers to utilize their EMI payments for other emergencies?
Mortgage EMI Sleeping Period offers mortgage borrowers a break from making mortgage EMI payments, It allows borrowers to utilize their EMI payments for other emergencies. Mortgage EMI Sleeping Period can be a huge relief to borrowers presently as the interest rates have been increasing.
If 2 people cosign as borrowers for a mortgage how can you get one person off the mortgage if they aren't making any payments?
The only way to remove a borrower from a mortgage is to refinance the mortgage.
Does Chase provide amortization tables for borrowers?
Chase does provide amortization tables for borrowers if the borrower is looking at a mortgage. It can be accessed through one of their calculators that calculates the benefit of making extra payments.
What services are offered by a reverse mortgage lender?
A reverse mortgage lender allows people to receive monthly payments and not have to pay back any of the money until the home is sold or all the borrowers passes on.
Why are refinance rates lower than new mortgage rates?
Because new borrowers may have no history of making payments while in a re-fi the bank knows the borrower made their payments reliably.
How hard is it to get approved for a 15 year mortgage?
In order to get a 15 year mortgage you need to have good credit. You must also be able to pay the larger monthly payments without any difficulty. Getting a approved for a 15 year mortgage is not difficult as long as you have good credit and can afford the payments.
If your lender sells your loan to another lender are they suppose to notify you that your mortgage was sold?
Yes, do not send anything to anyone who claims to have purchased the mortgage. Continue to send payments to the original mortgage company until THEY inform you otherwise. There is a scam out there where people get the mortgage information from county records then send an official looking letter. It's good for one or two mortgage payments to a mail drop and you end up being out a couple payments. Don't fall for that one. If you have any questions, contact your original mortgage company and verify the mortgage status
Federal Student Loan Payment Based on Income?
Borrowers who enter the repayment period on their student loans, but have trouble affording their payments have an option. The federal loan service allows borrowers to make payments on their student loans based on their income. Borrowers must submit records of their income to qualify for income-contingent payments. The lender will evaluate the borrowers' income and set their payment amount accordingly. Borrowers still accrue interest during the period of time that they are making income-contingent payments. However, borrowers may still save money by making these lower payments if they do so in a timely manner, thereby avoiding earning late fees or defaulting on payments.
Where can a veteran get a VA loan?
VA loans are mortgage options for borrowers who do not have down payments. They are available to veterans and active military personnel. VA loans are a little easier to qualify for than conventional mortgages.
What do it mean when you get a letter from your mortgage co that they have sold your mortgage to another servicer?
That means another bank has purchased your mortgage. The original lender should arrange to have an assignment of mortgage recorded in the land records to make the assignment legal. As long as you make your payments on time you shouldn't suffer any effects except a change in the address where you send your payments.That means another bank has purchased your mortgage. The original lender should arrange to have an assignment of mortgage recorded in the land records to make the assignment legal. As long as you make your payments on time you shouldn't suffer any effects except a change in the address where you send your payments.That means another bank has purchased your mortgage. The original lender should arrange to have an assignment of mortgage recorded in the land records to make the assignment legal. As long as you make your payments on time you shouldn't suffer any effects except a change in the address where you send your payments.That means another bank has purchased your mortgage. The original lender should arrange to have an assignment of mortgage recorded in the land records to make the assignment legal. As long as you make your payments on time you shouldn't suffer any effects except a change in the address where you send your payments.
Can you do a loan modification if you are not working?
In order to get a loan modification you need to have a job. Lenders will have difficulty agreeing to any kind of reduction in your mortgage if you are unable to make payments.
What can I use to calculate mortgage payments?
Mortgage payments are very expensive nowadays, so you have to work hard to get rich and to get all the worldly desires you have, you can use a calculator to calculate mortgage payments.
