Small Town Wisconsin Lakefront Home - Current Short-term Rental

[Yuepheng Vang]

My wife and I recently purchased a home on Lake Onalaska, WI, that we are currently renting out part-time with gross monthly income at about $2,800. It is currently our primary residence, and we stay at a second home when it is booked. We closed in November 2021 with 3% interest rate with an assumable loan. Our first baby is on the way, and we are considering selling our home (since we already have so little time to manage the property). How appealing would the loan terms be to a buyer assuming our loan now that interest rates are over 5%?

[Mitch Kennedy]

Probably very appealing to the buyer. However, your lender might not find it as appealing. However, I'm no expert on the process of assuming loans.