Roam, a platform launched last month, connects sellers who have locked in low rates with potential buyers, through the process of mortgage assumption.
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How does an assumption of a mortgage work?
Mortgage assumption allows the seller of a home to pass along to the buyer an existing home loan, negotiated earlier at low interest rates. The buyer takes over the seller’s existing mortgage at closing in lieu of getting a new loan.
home in Gainesville, Georgia, listed at $350,000 can be assumed for a 3.125% interest rate with a $35,000 down payment. Then monthly mortgage cost would come to $1,359 as opposed to $2,381 at the current mortgage rate of 7.5%
It also could be an attractive option for the agents who are grappling with low transaction levels, and the platform can help generate more sales.
Swapna Venugopal Ramaswamy is the housing and economy reporter for USA TODAY. Follow her on Twitter @SwapnaVenugopal
Source: usatoday.com