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Updated almost 5 years ago on . Most recent reply
Why Assume an existing mortgage?
What is the upside in assuming an existing mortgage on a property? Most deals I see that advertise the ability to assume the existing mortgage seem to have higher interest rates compared to what is being offered now on new loans.
Most Popular Reply
Well, in a declining interest rate market assuming an existing mortgage probably isn't economical. But, it can be helpful to assume a mortgage if you don't qualify for a mortgage... Maybe you are going to flip the property and thus won't be holding on to it for long. Saves you the cost and energy of getting a loan that you will most likely extinguish when you sell shortly.
Does that help?