Posted by Brent_IL on January 09, 2001 at 20:15:38:
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fees for assuming mortgage - Posted by Dave (CA)
Posted by Dave (CA) on January 08, 2001 at 15:31:58:
I was looking at a property that had an assumable loan and the bank is saying it will cost around $2K to do the assumption. Does this sound right? Seems to me that it would cost that much for a new loan. If that is true, I don’t really see the advantage of assumable mortgages. Am I missing something?
Re: fees for assuming mortgage - Posted by Bill Gatten
Posted by Bill Gatten on January 08, 2001 at 21:11:11:
Ayup! 'Bout the same as a new loan. Did they tell you what the credit parameters were and how much the new title insurance and hazard insurance conversions would be…not to mention Escrow fees, etc.?
The real advantange of an assumption is that you can get the original interest rate and a reduced payment term (e.g., 24 years left to go instead of 30).
Just do note that there are other ways to assume payments without a formal assumption, without a Due on Sale violation.
Bill Gatten