Assumable mortgages were previously very popular, but have fallen out of favor except for those mortgages backed by the Veterans Administration (VA). The idea was that if a homeowner had a low rate mortgage they could pass the mortgage to another instead of using the proceeds of the sale of the home to pay off the loan. As interest rates continue to climb, this type of mortgage will come roaring back, probably with more fees and paperwork attached.
- What is a mortgage and what does mortgage mean?
- What is a fixed rate mortgage and what are the advantages of a fixed rate mortgage?
- What is an adjustable rate mortgage and what are the advantages of an adjustable rate mortgage?
- How do I compare mortgage rates when shopping for a mortgage?
- What is mortgage insurance and is mortgage insurance optional?