In summer 2024, Anthony Volpe sought to buy a house near Orlando amidst rising prices and increased mortgage rates, which had climbed to around 6.5%. Missing the affordable mid-pandemic mortgage rates, Volpe discovered a potential solution through assumable mortgages. These loans allow buyers to take over previous mortgages, benefiting from the lower rates originally secured by the seller. Companies like Roam facilitate this process, breathing new life into an option that had fallen out of favor as mortgage rates dropped. However, many homeowners remain unaware of the loans they possess, posing challenges in real estate transactions.
By utilizing assumable mortgages, buyers can acquire loans with lower rates, potentially offering significant savings, despite rising home prices and existing mortgage challenges.
Anthony Volpe's experience highlights the re-emergence of assumable mortgages, which allow buyers to take over lower-rate loans, proving advantageous in today's high-rate environment.
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