assumable

Dec 27 2023

Retiring Soon? Why Moving Might Be the Perfect Next Step

If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.

Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.

How Long You’ve Been in Your Home

From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer (see graph below):

When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.

How Much Equity You’ve Gained

Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):

While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.

Consider Your Retirement Goals

Whether you’re looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones.

Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you sell your current house and guide you through buying the home that’s right for your lifestyle today.

Bottom Line

Retirement can bring about major changes in your life, including what you need from your home. Connect with a local real estate agent to explore the available homes in your area.

Dec 21 2023

New Cash Offer Technology Quickly Identifies 1000 Assumable Mortgages in Seconds

Identifying assumable mortgages in the United States can help all industry stakeholders. Dr. Jan Duffy REALTOR with Berkshire Hathaway HomeServices Nevada has partnered with FHA Pros, LLC, which is the industry leader, of the new technology to identify assumable mortgages quickly. It allows Dr. Jan Duffy REALTOR and her team to assist her clients in benefiting from assumptions effectively.

Using the latest technology solutions allows her team to identify properties with an assumable mortgage attached. We immediately have access to the seller’s loan details, providing buyers with the relevant information to make an offer to assume the seller’s mortgage.

“This technology assist the buyer and the seller with the assumption process,” says Dr. Jan Duffy REALTOR. She continues, “We provide the seamless assistance required to ensure compliance with assumption rules, making the process easier for everyone.”

My selling homeowner benefits from assumable mortgages because of the shortened contract period required for sales since there are no delays for things like setting up funding or getting appraisals. Meanwhile, servicers also continue to collect the same interest payments that would stop if the buyer were to obtain a new loan.

Buyers Benefit from Assumable Mortgages

Assumable mortgages let our home buyers take over an existing mortgage loan from a home seller. In this rising interest environment, the interest rate savings and terms of the original loan remain the same, resulting in potentially hundreds of thousands of dollars in savings over the life of the loan.

There are about 11.4 million assumable mortgages in the U.S., making up 24% of all home mortgages. These are not conventional mortgages but loans backed by the Federal Housing Association (FHA), the Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA).

These government-backed outstanding loans allow a qualified buyer to take over from the seller. Until recently, borrowing rates were low, meaning that most of these loans have interest rates of between 2.5% and 3%. Assumable loans weren’t a well-known option until very recently. However, the demand for this financing mechanism has increased with the rise in home-loan interest rates.

All FHA, USDA, and VA mortgages are fully assumable by a buyer, meaning buyers can assume the existing rates and terms of these mortgages from the seller. Assumable mortgages give buyers significant savings from interest payments, costs, and the years required to repay the mortgage.

The buyer of an assumption mortgage enjoys the following benefits:

Interest savings
No new loan origination or funding fees.
Shaves off potential years of payments
No appraisal is required
Possible mortgage insurance savings
Pay no mortgage tax in states where it is applicable
FHA buyers save on the 1.75% upfront mortgage insurance premium
Faster processing
Qualify for a higher sale price with a lower monthly repayment
More buyers qualify when the repayment is less than that of a new mortgage seller Benefits of Assumption

Assumption also benefits the seller because the lower payment their loan offers creates more demand as more people qualify for the lower payment, which translates to a more attractive property and higher sales price. Once the assumption is complete, the seller is forever released from liability on the mortgage, enabling them to obtain a new mortgage in the event they are purchasing a new home. If you have a home with a FHA, USDA, or VA mortgage, and want to sell your home, reach out to Dr. Jan Duffy REALTOR.

At Speedy Cash Home Offers, we understand that selling your home can be a complicated and time-consuming process. That’s why we offer a solution that not only saves you time but also helps you get the best deal for your property – through our assumption program.

Our assumption program allows buyers to take over your existing mortgage, making the selling process faster and easier for both parties involved. And with this option, you can qualify for a higher sale price while still offering a lower monthly repayment for potential buyers.

But how does assumption benefit the seller? For starters, it creates more demand for your property as more buyers can qualify due to the lower payment offered by your loan. This results in a more attractive property and ultimately leads to higher sales

At some point, as you start thinking about the years ahead, this question tends to come up:

“Could I stay here long-term… or would it make more sense to move?”

It’s not always urgent. It often shows up in small moments, like going up and down the stairs, keeping up with the maintenance, or just thinking about what the next chapter of your life might look like in this home.

And for most people, the answer is simple. They want to stay.

The USC Leonard Davis School of Gerontology found about 90% of adults over 65 prefer to stay in their homes as they get older (see below):

But even if staying feels like the right answer, it’s still worth thinking ahead about what that might actually look like. That’s where the right agent can really help.

What You Need To Plan for If You’re Staying in Your Home

Aging in place is definitely possible. But it’s better if you have a plan. And here’s why. The home that once worked perfectly may need to change with you over the years. And it’s easier if you can anticipate those expenses.

Sometimes that means small updates: like adding grab bars in the shower.
Other times, you’ll have to make bigger decisions: like reworking layouts or moving key spaces to the first floor.

Some of those changes are going to be simple. Others can be a meaningful investment. And that’s why thinking about it early matters. Not because you need to decide anything right now, but because it gives you time.

Time to understand what your home may need.
Time to explore your options.
Time to find the right contractors.
Time to space out the expense of the upgrades.

According to ElderLife Financial, here’s a rough baseline of what it could cost depending on what needs to be done (see below):

And don’t worry. If your heart is really set on staying, but the costs feel like a concern, it helps to know you have options. Depending on your situation, there may be financial assistance programs available, along with tools like home warranties to help manage unexpected costs.

Just remember, if you’re thinking about making updates, it’s always worth having a quick conversation before you start. A real estate agent can help you understand which changes tend to make sense for your situation and how they may impact your home’s value based on your local market.

When Moving Might Make More Sense

But staying isn’t always the best fit for every situation. According to Pegasus Senior Living:

“While most seniors hope to age in place, practical considerations sometimes make selling a home the wiser choice.”

Sometimes, it comes down to a simple shift: when the home that once made life easier, starts to make it harder.

That might look like:

Maintenance or yardwork that’s starting to feel overwhelming
Stairs or layouts that are getting harder to manage day-to-day
Or needing more support or care or being too far from loved ones

And sometimes, it’s not about necessity at all. It’s about lifestyle. Some homeowners just don’t want to live through major renovations. Others are ready to simplify, downsize, or move somewhere that better fits this next chapter, whether that’s a smaller home, a 55+ community, or a place closer to family.

For them, moving simply means making daily life easier.

Bottom Line

There’s no one-size-fits-all answer here.

Some people stay and make updates. Others move to simplify things. Either can be the right choice. The goal isn’t to pick one today. It’s to understand your options early, so when the time comes, you feel confident instead of rushed.

And if you ever want a sounding board to think through what the future could look like for you, a local real estate agent is there to help.

assumable

How Long You’ve Been in Your Home

How Much Equity You’ve Gained

Consider Your Retirement Goals

Bottom Line

Buyers Benefit from Assumable Mortgages

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