Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

Who can benefit from assumable mortgages? #coloradohomeguide #realestate #coloradorealestateguide

1 Feb 2025 · 1 min

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1:17

In this segment, the speakers discuss why assumable mortgages have regained popularity, attributing it to a stagnant market. They identify the primary beneficiaries as first‑time home buyers, traditionally aged 26‑35, whose age range has been pushed higher in recent years due to affordability challenges. Many now need family members to contribute equity to afford a purchase. Assuming an existing low‑interest loan (3‑5%) offers a significant advantage over current higher rates, making it attractive not only to these buyers but also to renters who wish to own a home at a lower cost.

The reason why they're coming back right now, and they've come back for the last year, year and a half or so, is because the market has kind of been at that standstill.
These are low interest loans. And who does it most benefit to get into something like this? Who would be some of your ideal people that you would say this probably fits really well?
Honestly, I think the first-time home buyers, right? People that The affordability issue has impacted the most where that demographic has typically been people that are, you know, 26 years to 35 years old is that first-time home buyer demographic. Now that number has been pushed upwards in these last several years. Yeah. It's been pushed much higher. And now most of those purchases have to have someone else in the family kind of come in and bring equity for them to be able to purchase. So it hugely affects them because they're able to assume a loan with one of those mortgage rates that they missed, they think they missed out on, right? And the 3%, the 4%, even the 5% right now would be a lot better than where we're at. So it, it's mainly for that demographic, but on it for anyone that is looking to own their own place, maybe they're renting and would like the low interest rate.