How to get a 3% interest rate on a house?!

[FastSickle]

Why does this man sound like he's trying to record this clip without waking anyone up

[gdaddy]

The existing loan will most likely have a balance that's well below the current purchase price. You're still going to have to finance the rest.

[Bone-qhfg]

The sellers will have to be willing to offer an assumption on the house.

[Billionaireben]

assumption loans were normal until the early 80s when banks lobbied to make them no longer a federal requirement because too many people avoided 16% mortgages. We lost that and the right to deduct credit card interest from personal income taxes (businesses can still do that.) Veterans may have had assumption allowances as recent as the early 90s but even if they got a 30 year loan; it's paid off. In theory, someone could try to get an assumption clause in their mortgage but I doubt a bank would allow it.

[SithLordDarthBane]

Ok when you asume a loan and purchase prize is more you have to pay that in cash. So 600k home and they owe 300k you are still on the hook for the other 300k. So this guys is getting your hopes up.

[waza]

I can’t believe you can lock in rates for so long. Here in Australia no one will give a fixed rate for more than 5 years, after that you revert to standard variable rate.

[JimMorrison-dn]

I sold my first townhouse in 1987 with an assumable V.A. mortgage. I was only in it for 14 months, but it sold for $23, 000 more than I paid for it. The buyer was able to put together the money to close the deal. 5 years later he sold that townhouse and paid off the V.A. mortgage. At that point I was eligible to take out another V.A mortgage with the same assumable feature.

[vinzettoducama]

You still have to pay the seller the equity at closing. On a $600k house bought a few years ago this could easily be $100k.

[ltsSoSusieWong]

But that only works if the seller it still paying for that house right?

[davidtree]

It is incorrect that federally backed loans are assumable. Most conventional loans are federally backed, but are not assumable.

Additionally, the problem with the strategy proposed is that a potential buyer can only get the lower rate on the amount still owed on the original mortgage. For most houses, this is only a fraction of what the house is worth.

[g.s.m.]

🔥🔥🔥🔥🔥thanks you for the great advice!!

[johnbeck]

Last assumable loan I was able to get was in the will not allow assumable loans any more.

[kyle]

Any hacks for student loans? The interest rates are so high this year…

[mosesbarron]

And you’ll need cash to pay the seller to give them the market value of the home. Am I missing something?

[sonofawil]

30-year is the amortization, not the term. You’ll get a year or two of whatever’s left on their 5-year term, then you’ll have to refinance at whatever the interest rate is. It’s a good idea but It’s not magic.

[NextShotPickleball]

Yeah ok. Chances are this 3% loan was originally for a 400k house. If the owners owes 350k to the bank, You still have to get a second mortgage for the difference.

[coolbrotherf]

I still have no idea what any of this means, but I'm a college student with no money so I can't buy a house even if I wanted to.

[DR-wwrx]

Did you learn all this stuff from the wacky question mark guys book?

The one they used to advertise on late night TV back in the day 😊

[cloverlief]

Sounds great until you realize the seller bought the property at 300k, and its now worth 600k. Then you are needing to cough up the other 300k to do this, as it does not cover increased equity.

[dont.ripfuller]

I ain't paying 3000 a month for anything. Ill sleep in a box and pile that shet into xrp, staked at 17% cosmos, staked at 31% Xcn, staked at 10% Dot, qnt, lcx, maple, hbar. Then I'll go buy the neighborhood block in cash🤔 well, so to speak.