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Rates Improve as Fed Promises Continued Mortgage Buying; FHA Loans Are Assumable

Great Story: We had an elderly couple come by yesterday for a Reverse Mortgage. They bought their house in the late 1970s in Danville, CA. Their home cost more than similar nearby homes because it came with an assumable 9.25% mortgage, at a time when mortgage rates were close to 20%. In other words, the low-rate assumable mortgage made the home worth a lot more money.

The point of the above story: FHA loans are assumable, Fannie Mae loans are not. This is one more huge advantage of both FHA financing and buying now. “Assumability” and a very low 30 year fixed rate could potentially make a home worth far more money in the future if (when?) rates climb back to double digits.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167