If you’re a seller all of a sudden because of a major life event. But you were one of the few that was able to secure ultra-low interest rates over the last two years. The first thing that you need to do, is finding out if your loan is assumable.
This means that a new buyer can actually just step in and replace you as the borrower. They would continue to pay that ultra-low interest rate and the same payments of your loan terms. Of course, there’s the gap between the new sale price that you want to sell the home for and what’s still owed on the mortgage. That gap will need to be handled between yourself and the buyer. Maybe the buyer brings 100% cash of that difference or you guys set up some kind of seller finance loan. Where they pay you back slowly over time.
The most important thing is to check that the loan is actually assumable. Because if it is not, and the lender finds out, that the buyer’s name has changed on the home, then they can actually call that loan due in full right away if they want to.
The following government back loans are assumable, such as:
-FHA
-VA
-USDA
Some conventional and non-conventional loans can be assumed. A great place to check would be the closing disclosure from the lender that you received at the time of closing. Having an assumable loan would make it very attractive for buyers to consider purchasing your home, so that they can acquire an interest rate that is no longer being given out.