74: Assumable Loans: How to Time Travel Back to 3% Rates on Your Next Buy w/Craig O'Boyle
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With assumable mortgages, you can **snag a three percent **interest rate) even in 2023’s high-interest environment. These loans exist everywhere around you—you could be sitting on an assumable loan without even knowing it! So, if there’s a way to pick up properties at all-time low-interest rates, why isn’t everyone taking advantage of assumable mortgages? We brought **Craig O’Boyle **from Assumption Solutions on to the show to explain.

Assumable mortgages aren’t new, but most real estate agents, loan brokers, and homebuyers have** no idea what they are**. In practice, an assumable mortgage allows a homebuyer to** “assume” a seller’s loan with the same interest rate, contingencies, and principal paydown) as the seller. This means you can walk into a home with significant equity**, a low-interest rate, and the same** fix-rated loan **you’d be picking up from a bank. But, if you want an assumable mortgage, you’ll need to know where to find one.

Craig walks us through the ins and outs of assumable mortgages, where investors can find one, why most mortgage lenders and brokers don’t know about them, and one BIG caveat you’ll need to hear before you chase down this better financing. Want a lower rate and monthly payment with higher cash flow)? Stick around; we’ll give you everything you need to know to find a low-interest assumable loan in your area!

In This Episode We Cover

Assumable mortgages explained and why a bank would allow a buyer to assume a loan

**Assumable loans vs. **subject to) and how one strategy is far riskier than the other 

**Fees you can expect to pay **when purchasing a property with an assumable mortgage 

House hacking) and using assumable loans to **profit off your primary residence **

The three types of** loans that can be assumable** (and others that WON’T work)

**The “assumption gap” **and money you’ll need at closing to get the deal done 

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent)

BiggerPockets Forums)

BiggerPockets Agent)

BiggerPockets Bootcamps)

Join BiggerPockets for FREE)

On The Market)

Join the Future of Real Estate Investing with Fundrise)

Connect with Other Investors in the “On The Market” Forums)

Subscribe to The “On The Market” YouTube Channel)

Dave’s BiggerPockets Profile)

Dave’s Instagram)

Jamil's BiggerPockets Profile)

Jamil's Instagram)

Jamil's YouTube)

Subject To Real Estate Explained)

Connect with Craig:

Craig's Website)

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-74

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