You Can Still Get a 3% Mortgage Today

00:00 Intro
02:22 Assumable Mortgage
03:54 Types of Assumable Mortgages
05:25 Advantage: Rates
05:53 Advantage: Application
06:12 Disadvantage: Limits
06:31 Disadvantage: Down Payment
07:18 Disadvantage: Second Loan

Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

Thanks for watching, I appreciate you!

[Peterl]

Banks are selling mortgages. People always say it's a good option to buy at discount, but with the market turmoil and everything at stake in present economy, I'm thinking of buying stable coin to hedge against inflation, or is it all right saving over 350k ?

[educatedwanderer]

i remember when I was 25 and I bought my first ranch style home for $50k, at 8% for a 30 year mortgage. Then at age 47 I bought a bigger $165k home at 2.7% with 40k down payment making the loan $125k for a 15 year mortgage. I paid the house off early despite the low rate as I was able to max out my retirement savings also. I'm 55 now and my house has gone up in value to $220k in a short amount of time. I have put up new fence and paved the driveway, and will probably have the roof replaced soon but none of these upgrades explain the increase in value.

[FrankHaubrich-mtgw]

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.

[ld]

My first home in OC, Ca had a 9.75% mtg, later refied it to lower rate and 15 year. Then had to move for work, so bought our house in the Central Valley with a 15 year loan at 6%. Paid it off and then refied and pulled out 100k to build a shop at 4.75% I would considr an assumable load but the circumstances would have to be just right. Keep up the excellent content Erin! Have a blessed weekend. Larry, Central Valley, Ca.

[bryanwhitton]

When I purchased my first home in 1978 in San Jose, CA. a small 4 bedroom home for $88K. The interest rate was 13 5/8% with a negative amortization for the first 5 years. A few years later, I don't remember if it was 2 or 3 years, we refinanced the now $92K loan at about 5% and considered ourselves very happy.

Our current home load, also in San Jose, is at 2 5/8&. We refinanced during COVID and didn't take any money out. It extended our loan term but our payment dropped over $500/month. We broke even in about 18 months and the monthly payment is a lot easier on our budget. I have always known about assumable loans but never was in a position to take advantage of them.

[raylukic]

Excellent timing for this video, I am looking to buy a house later this winter.

[Jamie-dzdg]

Rates are definitely a part of the equation. Many people don't talk about the crazy run-up in home prices over the last 2-3 years. Not everywhere, but many places that would have been affordable have been appreciated at a ridiculous rate due to the large influx of COVID buyers. Prices need to break, then we can discuss rate changes because rates have other impacts across the broader economy that need addressing as well, but that is beyond the scope of this video and discussion.

[edwardtakenaka]

Thank you for keeping us informed 🌹🌹🌹🌹

[mistshaw]

This sounds good in theory, but it hardly ever works. I'm a mortgage broker and have had several clients reach out to me about assuming a loan, even though they need to go to the servicer to apply, and they can't make it work. The problem is if the purchase price is 400K, and the seller owes 200K, the buyer has to pay the difference and most buyers don't have the cash to do it.

[HibachiOG]

I hate hearing the "these rates are normal" argument because it completely ignores the fact that home prices back then were much closer to 1x your salary so paying 7% or more was not a big deal.

[loudelement]

😂😂 Repeat after me: it's not the interest rate, it's the outrageous housing price.

[Godseagle]

I’m planning on selling my house in summer of next year. I have never heard of an assumable mortgage. I have a VA loan. That can be a great selling point!

[derekhudson]

I’d never even heard of an assumable mortgage, so it was interesting to learn about it. I can’t imagine that this is a common practice, but it seems the only thing that’s going to bring home prices down is more inventory.

[WIZCO]

We currently have a 3.125% interest rate which I love! However we found our dream/forever home and it was priced reasonably ( considering the market) as the seller had to move quickly due to job change. Not going to like getting a 6.5% rate, but we are also getting double what we paid for our current house so will pay the higher rate short term and rates should go back down soon.

[fransinigiraldo]

Amazing vid and topic, Erin. Looking into buying the in-laws place but she has a reverse mortgage so hoping for rates to drop by then.

[ThomasPaine-wcwe]

I count myself lucky and closed on my home @ 2.75% in the fall/winter of 2021, just in time for the rates to start climbing. We had to offer 5% over ask. Waive the inspection and put in another 10k in cash due to a low apprasial to beat out 14 orher offers, but we were successful. It litterly felt like we were playing a real-life game of musical chairs, and we grabbed the last one as the music stopped.

[brycegardner]

We assumed a mortgage at 10.5% to avoid a 12% mortgage in 1989. We got a second mortgage to cover the additional down payment.

[Iffy]

Here I thought you were pulling a Scotty Kilmer (YouTuber) and making a crazy clickbait title. Nope! Legit stuff, very cool. It's useless for me, but great info.

[HighCountryRambler]

The longer homes sit on the market the more assumable loans will become a selling feature and more frequent.
Like others here when rates were 18-19% only way I could qualify was to assume a 8% interest only 5 year balloon loan. Basically renting to own LOL.
After the 5 year period I cleared my divorce debt, making more $$ and rates had dropped so reified and paid off the balloon and stared over again, in marriage and mortgage...
In retrospect, should have stuck with the mortgage.

[scottthomas]

I bought my first home in 1986. I was ecstatic to get a 30 year 10% mortgage. I refinanced it in 1989 and got a 15 year mortgage at 8.5%. People today don’t realize how cheap money is now. When I was starting my career in the late 70’s/early 80’s, car loans were around 14%.