Did you know that you could get a 3% mortgage rate on your next rental property?
With rates hovering around 6%-7%, this would shave hundreds of dollars off your monthly mortgage payment and save you a few hundred thousand dollars in total interest. That alone could flip a deal with negative cash flow into a profitable one.
But rates don’t appear to be coming down any time soon. So, how is this possible?
Welcome back to the Real Estate Rookie podcast! Today, we’re talking about assumable mortgages—existing loans that have rates as low as 3%. These aren’t “goldilocks” properties that only the luckiest investors find. There are millions of them all across the U.S., and we’ll show you exactly how to find them.
Stay tuned to learn everything you need to know about these loans, like how to cover the “equity gap” that many of these properties have, a six-step process for taking over an existing mortgage, and the biggest pitfalls to avoid along the way. If you’re struggling to find properties that cash flow, this investing strategy could be the answer you’ve been looking for!
In This Episode We Cover
Everything you need to know about assumable mortgages before you buy
The main difference between assumable and subject-to deals
The three main types of government-backed, assumable loans
Six steps to find, buy, and close on an assumable mortgage
The “equity gap” explained, and how to find “sweet spot” properties
The best places to find assumable properties for sale online
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-723.
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