The NMWelcomeHome Team Blog

Assumable home mortgages offer a unique opportunity for both buyers and sellers in the real estate market. These loans allow a buyer to take over the seller’s existing mortgage, maintaining the original terms and interest rate. This can be highly advantageous, especially in an environment where interest rates are rising.

For buyers, assumable mortgages can mean significant savings. Instead of securing a new loan at a higher interest rate, the buyer inherits the seller’s lower rate. This can reduce monthly payments and overall interest costs, making homeownership more affordable. Additionally, assuming a mortgage can streamline the buying process, as it may bypass some of the rigorous underwriting procedures of new loans.

Sellers can also benefit from offering an assumable mortgage. It can make their property more attractive in a competitive market, potentially leading to a quicker sale. For homes with particularly favorable loan terms, this feature can be a major selling point.

However, there are some considerations to keep in mind. Not all mortgages are assumable; typically, FHA, VA, and USDA loans offer this option. Both buyer and seller must meet the lender’s requirements, and the buyer usually needs to qualify financially. There may also be fees associated with the assumption process.

Overall, assumable mortgages present a win-win scenario, providing financial advantages and simplifying transactions in the housing market.

Here is how it works:

If a sellers mortgage is $200,000 and the property is worth or selling at $300,000, the buyer must come up with the difference of $100,000 to assume the mortgage.

Assumable Mortgage

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$665,000

↓ $5,000

1709 Conestoga Drive Se, Albuquerque

5 Beds 3 Baths 3,423 SqFt Residential MLS® # 1073410

La Puerta Real Estate Serv LLC

$559,000

↓ $39,000

1712 Mammoth Way, Albuquerque

5 Beds 3 Baths 3,060 SqFt Residential MLS® # 1076760

Prestige Real Estate

$535,000

↓ $10,000

2 Hayward Court, Edgewood

3 Beds 3 Baths 2,338 SqFt Residential MLS® # 1076844

K2 Omni Group

$525,000

1819 Shadow Leader Place Se, Albuquerque

4 Beds 4 Baths 3,165 SqFt Residential MLS® # 1076224

Coldwell Banker Legacy

$525,000

9640 Pago Place Nw, Albuquerque

5 Beds 3 Baths 3,915 SqFt Residential MLS® # 1075839

RE/MAX SELECT

$515,000

1053 Evening Primrose, Bernalillo

3 Beds 3 Baths 1,969 SqFt Residential MLS® # 1077666

Southwest Select Properties

$500,000

4212 Skyline Loop Ne, Rio Rancho

4 Beds 4 Baths 2,773 SqFt Residential MLS® # 1076827

Double Eagle Real Estate

$415,000

↓ $5,000

1449 Wagon Train Drive Se, Albuquerque

3 Beds 2 Baths 2,405 SqFt Residential MLS® # 1040224

Coldwell Banker Legacy

$408,500

↓ $1,000

4807 Sandia Peak Road Ne, Rio Rancho

4 Beds 3 Baths 2,078 SqFt Residential MLS® # 1075739

Realty One of New Mexico

$387,500

1344 Peppoli Loop Se, Rio Rancho

3 Beds 3 Baths 2,206 SqFt Residential MLS® # 1072475

Congress Realty, Inc

$380,000

↓ $20,000

471 Big Sky Avenue Sw, Los Lunas

5 Beds 3 Baths 3,139 SqFt Residential MLS® # 1077653

Sandia Modern Realty, LLC

$380,000

↓ $10,000

516 Landing Court Ne, Rio Rancho

3 Beds 2 Baths 2,106 SqFt Residential MLS® # 1070215

Coldwell Banker Legacy

$349,900

↓ $2,100

9027 Indigo Sky Trail Sw, Albuquerque

3 Beds 3 Baths 2,300 SqFt Residential MLS® # 1074661

Absolute Real Estate

$343,500

↓ $6,400

2371 Firewheel Avenue Sw, Los Lunas

3 Beds 3 Baths 1,861 SqFt Residential MLS® # 1074445

Simply Real Estate

New

$330,000

10016 Ashland Street Nw, Albuquerque

3 Beds 2 Baths 1,680 SqFt Residential MLS® # 1077967

Berkshire Hathaway NM Prop

$310,000

↓ $10,000

8604 Spain Road Ne, Albuquerque

2 Beds 2 Baths 1,521 SqFt Residential MLS® # 1071899

Keller Williams Realty

$275,000

↓ $10,000

10401 Gloria Place Ne, Albuquerque

3 Beds 2 Baths 1,586 SqFt Residential MLS® # 1065035

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