Assumable Mortgages: Save Big on Your Next Home | 11221 NW 96th St, Yukon, OK
Unlocking the Benefits of Assumable Mortgages: A Game-Changer for Homebuyers In today’s housing market, where interest rates have reached historic highs, finding creative ways to save money on your mortgage can make all the difference. One powerful but often overlooked option is an assumable mortgage. Whether you’re buying your first home or upgrading to your dream house, an assumable loan can be a financial game-changer. Let’s break down what an assumable mortgage is, how it compares to a conventional mortgage, and why you should consider this option. Plus, we’ll spotlight a stunning property currently available with an assumable VA loan at just 4.9%! What Is an Assumable Mortgage? An assumable mortgage is a loan that allows a buyer to “assume” or take over the seller’s existing mortgage terms, including the interest rate, loan balance, and remaining repayment period. Unlike traditional mortgages, where buyers must qualify for a new loan at current interest rates, assumable mortgages enable buyers to step into a pre-existing loan, often at a much lower rate. Key Benefits of an Assumable Mortgage: •Lower Interest Rates: Assume the seller’s lower interest rate, which is often below current market rates. •Cost Savings: Avoid the higher payments associated with new loans at today’s rates. •Simplified Process: In some cases, the underwriting requirements may be less stringent than for a conventional loan. Assumable Mortgages vs. Conventional Mortgages Conventional Mortgage Process 1.Loan Application: The buyer applies for a new loan based on their credit, income, and debt-to-income ratio. 2.Current Interest Rates: The buyer’s interest rate will depend on current market conditions, which may be significantly higher than those of the seller’s original loan. 3.Closing Costs: The buyer pays closing costs on the new loan, which can range from 2% to 5% of the home’s purchase price. Assumable Mortgage Process 1.Seller’s Approval: The seller’s lender must approve the buyer to assume the loan. 2.Qualification: The buyer must meet the lender’s qualifications to take over the existing mortgage. 3.Equity Payment: The buyer pays the seller for the equity they’ve built in the home (the difference between the home’s sale price and the remaining loan balance). 4.Assumption Fee: A small fee may apply to transfer the loan, but it’s usually far less than conventional closing costs. Why Assumable Mortgages Are a Smart Choice With interest rates currently averaging 6-7%, an assumable mortgage can provide substantial savings. Let’s look at an example: •Conventional Mortgage: On a $300,000 loan with a 7% interest rate, the monthly payment for principal and interest is around $1,995. •Assumable Mortgage: Taking over a 4.9% interest rate for the same loan results in a monthly payment of approximately $1,590—a savings of over $400 per month! Over the life of a 30-year loan, that’s tens of thousands of dollars in savings, making an assumable mortgage an incredibly attractive option. Spotlight: 11221 NW 96th St, Yukon, OK If you’re looking for the perfect blend of comfort, convenience, and affordability, look no further than 11221 NW 96th St in Yukon, OK. This spacious two-story home in the sought-after Summerhill neighborhood boasts nearly 3,000 ft.² of living space, 12-foot ceilings, and custom stone and tile finishes. The open-concept layout, modern kitchen with premium appliances, and low-maintenance backyard with a private putting green make it an ideal choice for families and entertainers alike. Here’s the kicker: This home features an assumable VA loan at an incredible 4.9% interest rate! With $7,500 in seller concessions available to cover closing costs or a rate buy-down, this property is a rare opportunity to save significantly while securing your dream home. Who Qualifies for an Assumable Mortgage? While assumable mortgages are most common with FHA, USDA, and VA loans, conventional loans are typically not assumable unless explicitly stated in the loan terms. For VA loans, the buyer does not need to be a veteran to assume the loan, but they must meet the lender’s credit and income requirements. FHA and USDA loans also require lender approval, but they are designed to be more accessible to qualified buyers. How to Get Started with an Assumable Mortgage 1.Find an Assumable Listing: Work with a real estate professional to identify homes like 11221 NW 96th St that offer assumable loans. 2.Contact the Lender: The seller’s lender will guide you through the process and confirm your eligibility. 3.Plan for Equity: Be prepared to cover the seller’s equity, either through savings or by securing a second loan. The Bottom Line In today’s high-rate environment, an assumable mortgage can provide unparalleled savings, making homeownership more affordable and accessible. If you’re in the market for a new home, don’t overlook the potential of assumable loans to save money and secure a better financial future. Ready to explore your options? Check out 11221 NW 96th St, Yukon, OK, and experience the benefits of an assumable VA loan at 4.9%. Take the next step toward smarter homeownership today. Contact me at 405-784-6580 or visit willflanaganrealty.com/bookconsult to schedule your private showing or learn more about assumable mortgage opportunities.
How to Attract More Buyers for Your Home
2025 homebuyers have made one thing clear: they want move-in-ready properties. According to a recent Bright MLS survey, more than 56% of prospective buyers say that move-in-ready condition is their top priority. If selling is in your plan this year, here’s what you need to know about buyer priorities and how to prepare for them. What Makes Move-In-Ready Homes So Appealing? With high home prices, limited (yet rising) inventory, and elevated mortgage rates shaping the housing market in 2025, buyers are looking to avoid additional costs and hassles after closing. A move-in-ready home means: No immediate repairs or renovations: Buyers want to focus on settling in rather than dealing with contractors or DIY projects. Predictable expenses: With fewer surprise repairs, buyers can better manage their budgets. A seamless transition: Move-in-ready homes allow buyers to enjoy their new space right away. What Buyers Are Willing to Compromise On While a move-in ready home is a top priority, the Bright MLS survey reveals that buyers are willing to make compromises. Lisa Sturtevant, Chief Economist at Bright MLS, explains, "Our survey found that while prospective buyers realize that trade-offs are often necessary, they are more likely to compromise on the size of the home and location before giving up on their dream of finding a home in move-in-ready condition." Nearly 75% of buyers are open to purchasing a smaller home if it aligns with their budget or preferred location. Downsizing not only reduces costs but also lowers maintenance requirements without sacrificing quality. Additionally, about 64% of buyers are willing to consider homes outside their ideal location, prioritizing affordability and move-in-ready condition over proximity to work, schools, or other amenities. When it comes to upfront costs, 38.8% of buyers are prepared to stretch their budget for the right property, especially if it checks off their must-have features. Understanding this strong preference for move-in-ready homes provides an opportunity for sellers to meet market demand. Let’s take a look at how you can get your home ready for motivated buyers. How Sellers Can Capitalize on the Move-In-Ready Trend If you’re planning to sell your home, prioritizing a move-in-ready presentation can help attract buyers and maximize your sale price. This doesn’t mean you need to do a full renovation—but taking the time to do the following will help get your home market-ready: 1. Complete Essential Repairs Start by fixing any obvious issues like leaky faucets, chipped paint, or squeaky doors. Small repairs can make a big difference in how buyers perceive your home. 2. Invest in Cosmetic Upgrades Consider updates like fresh paint, new light fixtures, or modern hardware in the kitchen and bathrooms. These small changes can make your home feel updated without breaking the bank. 3. Stage Your Home for Success Staging helps potential buyers envision themselves living in your home. Declutter, depersonalize, and arrange furniture to highlight the space's best features. 4. Highlight Energy Efficiency With 32% of buyers prioritizing energy-efficient features, upgrading insulation or installing a smart thermostat can make your home stand out. What if your home isn’t move-in ready? Don’t worry—plenty of buyers are still eager to consider properties with a little room for improvement. Focus on showcasing your home’s strengths, like its solid structure, desirable location, or unique architectural details. These qualities can make it stand out, even if it needs some TLC. To sweeten the deal, consider offering repair credits. Whether your home is move-in ready or not, emphasizing its potential can attract motivated buyers in any market.
(Mind The) $27,000 Real Estate Gap: What Buyers and Sellers Need to Know
If you're planning to buy or sell a home in 2025, there's something you should know: buyers and sellers aren't seeing eye to eye on price. According to a recent survey by Clever Real Estate, there's a $27,000 gap between what buyers think they’ll pay and what sellers expect to get. Buyers are budgeting an average of $386,507, while sellers are eyeing $413,976. So, what’s behind this pricing mismatch, and what does it mean for you? Let’s break it down. What’s Driving the Pricing Gap? The $27,000 gap is rooted in how buyers and sellers view the market. 1. Sellers Are Riding High on Confidence After years of rising home prices, sellers are entering 2025 feeling pretty good. Nearly three-quarters (74%) of sellers believe their property will sell at or above the asking price—but as market conditions stabilize, this isn’t always the case in today’s market. This confidence can lead sellers to set prices higher than buyers are willing to pay. 2. Buyers are Facing Budget Constraints Buyers, on the other hand, are grappling with rising mortgage rates and affordability challenges. Nearly two-thirds of buyers (68%) worry that escalating home prices will delay their purchases. With budgets stretched thin, buyers may hesitate to meet seller expectations, leading to prolonged negotiations or missed opportunities. 3. Market Trends The majority of buyers and sellers (87%) expect strong demand in 2025, but housing economists are predicting smaller price increases than in years past. That’s great news for buyers looking for stability—but it might mean sellers need to adjust their expectations. How Buyers Can Navigate the Gap If you’re buying a home, that $27,000 gap might feel daunting—but don’t worry. There are smart ways to navigate it: Know the Market: Research local home prices so you’re prepared to make competitive offers. Understanding where sellers are coming from can give you an edge in negotiations. Be Ready to Compromise: While you might not want to pay full asking price, being flexible on other terms—like closing dates—can help you stand out. Leverage Market Stabilization: While home prices are still rising, the pace is slowing, with many agents predicting increases in the single digits in 2025. This could create opportunities for buyers to negotiate more effectively. How Sellers Can Attract the Right Offers Sellers, if you’re looking to get top dollar, it’s all about setting the stage and pricing strategically. Here’s how: Price it Right: Work with a local agent to set a price that reflects market conditions. Almost half of agents (49%) say pricing is the most important factor in selling a home quickly. Make Your Home Shine: A little extra effort in staging or professional photos can go a long way in justifying your price. Be Open to Negotiation: While it’s tempting to hold out for a dream offer, being flexible can help you close faster and avoid long delays. What It Means for the 2025 Market The pricing gap tells us a lot about the dynamics of the 2025 housing market. Sellers are optimistic, and buyers are cautious. The challenge? Bridging that $27,000 gap in a way that works for both sides. For buyers, it’s about being prepared and realistic about what you can afford. For sellers, it’s about understanding the current market and pricing your home to attract serious buyers. With a little give-and-take, both sides can find success. TL;DR Home buyers expect to spend $386,507 on average, while sellers are aiming for $413,976—a $27,000 price gap. Rising costs have buyers cautious, while sellers are confident they’ll sell at or above asking price. Navigating this gap takes strategy—whether you’re buying, selling, or negotiating. So, are you ready to take on 2025? Let’s bridge that gap together!
Lessons on Homeownership from Zillow’s Chief Economist
Recently, I came across a podcast featuring Skylar Olsen, Zillow’s Chief Economist. Much of the conversation was what you might expect—housing market predictions for 2025 what Zillow got wrong about 2024, and a breakdown of trends shaping real estate across the country. In other words, the kind of data I live for. But as the conversation wrapped up, Olsen was asked a question that shifted the focus: “What does homeownership mean to you?” Her response? It wasn’t about numbers or investments—it was about something far more personal. And it made me stop and think about how we, as homeowners (or future homeowners), define the meaning of home. Here’s what she said—and why it stuck with me. Beyond the Numbers Olsen started by acknowledging her analytical side. As an economist, she’s naturally drawn to crunching numbers—comparing the cost of homeownership with renting or investing in stocks. And sometimes, the numbers might show that owning a home costs more than renting. But here’s where she flipped the script. “That’s the cost of ownership and customization and personalization and vision,” she said. For Olsen, the value of owning a home goes beyond financial ROI. It’s about creating something uniquely yours—a space where you can bring your vision to life in a way renting doesn’t allow. (Side note: When it comes to your monthly budget, crunching the numbers is crucial. It’s all about finding a property that fits your budget and your vision. And, of course, building equity and financial wealth plays into this, too…but let’s save that for another day.) The Freedom of Homeownership Olsen then painted a picture of her own home—something you might not expect from a Chief Economist. In her backyard, she has chickens. Fruit trees. Flowers. Even pumpkins—though some have started to rot, which, as she joked, are now destined to become chicken snacks. “That is a vision that I can’t create if I was a renter. I don’t know what landlord would let me do this craziness. And that’s what ownership means to me. It’s not just the financials; it’s the optionality, the personals. “It’s my vision, it’s my castle.” It’s a reminder that owning a home is about more than walls and a roof. It’s about having the freedom to make it your own, whether that means starting a garden, creating a space for family gatherings, or building a sanctuary that reflects your personality. The American Dream, Redefined When you hear the words “the American Dream,” it’s easy to picture the classic image of a single-family home with a white picket fence. But, it’s not the 1950s anymore—and Olsen’s perspective expands on that idea. “It’s not just, ‘Oh, I want to live in a single-family home.’ You can have the American Dream in a condo in New York—or even as a renter if flexibility is what you value most.” What really defines the American Dream, she says, is vision and choice—and for many, homeownership is the ultimate way to create something that is truly theirs. Takeaways for Homebuyers Olsen’s story offers some key takeaways for anyone considering homeownership: Focus on What Homeownership Means to YouWhile financial considerations are important, it’s equally valuable to think about the emotional and personal aspects of owning a home. What kind of life do you want to create? How do you want your space to reflect your values and goals? Homeownership Isn’t One-Size-Fits-AllThe American Dream looks different for everyone. Whether you’re envisioning a backyard full of chickens or a cozy condo downtown, it’s about finding what feels like “yours.” Consider the Non-Financial BenefitsOwning a home isn’t just an investment in property—it’s an investment in your lifestyle, your vision, and your future. From the freedom to personalize your space to the sense of stability it provides, the benefits go beyond dollars and cents. Olsen’s response reminded me why I love helping people find homes. It’s not just about the transaction; it’s about helping them create a space where they can live their vision—no matter what that looks like. So, what does homeownership mean to you? Is it the freedom to make your space your own? The stability of knowing it’s yours? Or something else entirely?
Categories
Recent Posts
