Will Congress make a law to allow mortgage rates to be transferred to owner new home mortgage (loan officer, interest rate)
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Would congress ever make a law allowing existing mortgages to be transferred with the home owner to their new home? I heard someone make a comment on this on a news show a few days ago. I know Canada allows this in some fashion. Obviously the banks would be against it with the risks of transferring a mortgage to a new property. I wanted to see if anyone has heard rumbles of this.
Fannie Mae and Freddy Mac prohibit assumable mortgages, likely because lenders don't like them. Some FHA and VA mortgages can be assumed.
Just remember that while a borrower might find a lower rate assumable mortgage, that borrower is going to have find a lot of cash to get it because the value of the home likely increased dramatically.
Is there some kind of law that prohibits this? I rather doubt it.
Yeah, government-backed loans, maybe, but that's beside the point.
I'd say if a mortgage company or bank wants to transfer a loan at a low interest rate from one property to another, rather than requiring a new loan at currently prevailing rates be taken, that's their business as long as it's not an Uncle Sugar guaranteed one. It'd be STUPID to do it, but I'd think they are allowed to.
Tell me, OP, exactly why would I, if I were a loan officer, want to allow you to transfer your 2% mortgage on property A to property B when I could sell a new mortgage on property B at 6%
Is there some kind of law that prohibits this? I rather doubt it.
Yeah, government-backed loans, maybe, but that's beside the point.
I'd say if a mortgage company or bank wants to transfer a loan at a low interest rate from one property to another, rather than requiring a new loan at currently prevailing rates be taken, that's their business as long as it's not an Uncle Sugar guaranteed one. It'd be STUPID to do it, but I'd think they are allowed to.
Tell me, OP, exactly why would I, if I were a loan officer, want to allow you to transfer your 2% mortgage on property A to property B when I could sell a new mortgage on property B at 6%
???
There is a housing inventory shortage in this country. The elephant in the room is that anyone with 2 or 3% mortgage is not moving or selling their property, likely never. There's an article that said we now have a generation of landlords because you can't sell a house with that type of rate.
Opening up these types of loan would open up inventory, decrease housing rates, and loan officers will make more loans. I'm sure a loan officer would be open to accepting a clients 2% mortgage they have for $300k and sell a 7% mortgage on top of that for their new $800k house.
Something like this will have to be done, as interest rates will not be coming down in the foreseeable future.
Opening up these types of loan would open up inventory, decrease housing rates, and loan officers will make more loans. I'm sure a loan officer would be open to accepting a clients 2% mortgage they have for $300k and sell a 7% mortgage on top of that for their new $800k house.
Something like this will have to be done, as interest rates will not be coming down in the foreseeable future.
Yep. It could be 2007 again. Stack those mortgages so no or tiny down payments are needed.
Would congress ever make a law allowing existing mortgages to be transferred with the home owner to their new home? I heard someone make a comment on this on a news show a few days ago. I know Canada allows this in some fashion. Obviously the banks would be against it with the risks of transferring a mortgage to a new property. I wanted to see if anyone has heard rumbles of this.
I don't see that happening. Too many legal reasons preventing it. And this is just fine with me.
There is a housing inventory shortage in this country. The elephant in the room is that anyone with 2 or 3% mortgage is not moving or selling their property, likely never. There's an article that said we now have a generation of landlords because you can't sell a house with that type of rate.
Opening up these types of loan would open up inventory, decrease housing rates, and loan officers will make more loans. I'm sure a loan officer would be open to accepting a clients 2% mortgage they have for $300k and sell a 7% mortgage on top of that for their new $800k house.
Something like this will have to be done, as interest rates will not be coming down in the foreseeable future.
Bull crap! In the late '70's, there was a real estate boom in many parts of the US as rates crept from around 7% or 8% to around 10% or 11% or higher! The only people who think that current mortgage rates on single family homes are high are the ones who haven't been keeping track of mortgage rates for very long.
It's my understanding that in Canada and the UK, lenders are not required by law to allow the Assuming of a mortgage. It's the lenders decision. However, Porting of a loan is a semi requirement providing conditions are met. Assuming and Porting mortgages are not the same animal.
There is a housing inventory shortage in this country. The elephant in the room is that anyone with 2 or 3% mortgage is not moving or selling their property, likely never. There's an article that said we now have a generation of landlords because you can't sell a house with that type of rate.
Opening up these types of loan would open up inventory, decrease housing rates, and loan officers will make more loans. I'm sure a loan officer would be open to accepting a clients 2% mortgage they have for $300k and sell a 7% mortgage on top of that for their new $800k house.
Something like this will have to be done, as interest rates will not be coming down in the foreseeable future.
You're forgetting that lenders pay for the money they loan out.
If they are paying 5% (CD rates for example) for money, they mark it up to 6% or 6.5% and their profit is 1% to 1.5%. They aren't going to buy money at 5% and sell it for 2.5% or 3%. They'd be out of business in no time.
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