Should I Assume My Landlord's Mortgage?
Q. My landlord said he will sell his home to me as long as I assume his mortgage. How does this work?
A. Before venturing down the assumption path, you'll need to find out from the owner's lender if his loan is assumable. Then find out the seller's loan balance and interest rate. Depending on his loan balance and market value of the home, you may need to bring money to closing to offset the equity difference. Some sellers believe if they sell their home by having a buyer assume their loan they will save in closing costs. This is a myth. Closing costs for the seller and buyer will still need to be paid. With interest rates in the low 4's, loan assumption may sound attraction at first but do your homework. Good luck.
Have a real estate question or need some sound advice? Phyllis Staines answers your questions weekly in her "Ask Phyllis" blog in Saturday's Florida Times Union newspaper. Phyllis can be reached at (904) 476 - 7653 or email firstname.lastname@example.org.
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