Hello fellow agents,
I was speaking with another mortgage broker and wanted to get other agents opinion on this.
First I am also a mortgage broker who is passing my mortgage business on to my assistant who will become an originator. She will be running the websites of www.E-ArizonaMortgage.com and www.E-CaliforniaMortgage.com and can help agents with loans in AZ, CA, MN, NM, SD and WY for FHA and conventional.
Here's the Scoupe!
Basically since mortgage rates are near all time lows and FHA is an assumable loan, buyers can get lower payments by assuming the loan instead of obtaining new financing. FHA allows 95% loans on a cash out refinance. If your client who owns the house, does the refinance and takes the cash out now, they will have the cash from their home. You can then market a mortgage payment instead of a sales price to attract buyers who know what they can afford. The buyer will need to put 5% down and qualify for the assumable FHA mortgage that is currently on the home. Now if rates go up, the seller has more control over buyers than those who need to sell with new financing at a higher rate. This should get more for the property, especially when rates go up.
I am working on more details to start myself marketing this while rates are low but wanted to get other agents opinions.
Do you think this is a good idea and a creative way to capture low rates and make a property more desirable?
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