Mortgage Assumptions Increasing due to Higher Financing Costs

Higher interest rates and home costs have led to an increase in mortgage assumptions – whereby homebuyers undertake an existing mortgage from the seller – to lock in a lower rate. Mortgage assumptions, which are available for FHA and VA loans, have increased by 67% since 2022, according to American Banker, and could provide homebuyers with lower rates than what is currently available for a newly originated mortgage.

Read More