Unlock eSignature Licitness for Mortgage Quote Request in Australia

How to eSign a document: e-signature licitness for Mortgage Quote Request in Australia

a sumble mortgage is when you the buyer are taken over the current owners of the house or the sellers of the house current financing right you're taking over their debt so if you're buying a house from someone and let's just say they owe three hundred thousand dollars on a loan and it's an FHA mortgage well before I say that what assemble mortgage is on the certain mortgages that are assumable now we're talking traditional home buying right we're not talking investing okay because that's a whole different animal when it comes to some of the mortgages but for traditional home buyers the only FHA VA and USDA loans are assumable conventional mortgages are not assumable okay all right so that's first things first second thing is you need to know is when you're doing an assumable mortgage you have to go through the seller's current lender who they pay the mortgage to to qualify for that mortgage that the sellers currently have so if the sellers owe currently 300 000 at a two and a half percent interest rate on an FHA loan and you go through the seller's lender that they currently pay the mortgage through and you qualify then you can potentially assume their mortgage so let's just say they have they bought the house five years ago okay right oh let's just say let's just use round numbers they brought it in 2020 right right and they brought it they they started the loan at 350 and today they owe 300 and it's a two and a half percent interest rate and they got two and a half they've been in the house for two and a half years now okay so they got what's that 27 and a half years left on the mortgage so you're assuming where they stop right so you're going to have a 27 and a half year term you're gonna have the three percent mortgage with the balance of 300 000. you have you have three percent or two two and a half whatever I'm sorry two and a half percent I said those right so two and that you'll have whatever their terms are two and a half percent whatever their current balance is if it's three hundred thousand and if they only been in the house for two and a half years then you have twenty seven and a half years left on the term of that mortgage okay so you're assuming the current debt that they have okay now here's the flip side is the kind of a symbol mortgage let's say their house is worth 500 000. okay and you're assuming that mortgage for three okay there's a two hundred thousand dollar Gap between what they currently are and the value of the house what do you think has to happen so they've already paid 200 000 no I didn't say that they owe three hundred thousand and the house is worth five hundred thousand and they're selling the house for what it's worth at five hundred thousand oh I had it the other way around I thought I thought you meant that correct paid 200 but you're assuming their current loan at three hundred thousand what they are selling you the house for five so that's a come up for them isn't it for who for the seller how because now they have that equity yes the seller the seller has the equity correct right so now the buyer has to pay that difference out of pocket what difference the 200 000 because they're selling you the house so I put let me break it down more in layman terms okay I'm selling my house to YouTubes okay okay I owe 300 000 it's an FHA loan and I have a two and a half percent interest rate but my I'm selling you my house for 500 000 and you like your map if I go through the bank right now my bank I'll get like a six and a half percent and I can't afford that but at your 300 000 and two and a half percent that's a payment I can afford right but I'm like Tukes my house worth 500 and I want my five hundred thousand okay so there's a gap of 200k that right so what happens what happens you got to pay me 200k out of my pocket yes oh no we ain't doing that then then congratulations and go with the go with your 3.5 down at six and a half percent then so this is a play more or a tool rather than like because this is a tool and a play if you got money okay got you and it's a play and a tool if you meet a seller who might not have that much equity um so basically it depends on what the house is actually worth and what they owe so if they are in a position if they own the house for years and now we we see what home prices did right people got a lot of equity but if they're in a situation where y'all they brought at the top of the market and they're trying to sell it a year or two within right and they have a good interest rate that's lower than the current market but they might be a little tight or a little bit no equity or minimum Equity right they just they can't afford the house no matter what the rate is they can't afford it they need to get out of it and now they're right let's just say their rate is three and a half percent or four percent but the current market is six and a half you know that's still why it makes sense for a swimmable mortgage because now you that difference let's just say it's fifty thousand bet you can handle that yeah right yeah and you assume it so the assumable mortgage play is really good when the seller doesn't have a lot of equity or if you're a buyer who just was going to put that amount of money down anyway so if you got the capital yeah if I'm a person buying a 500K let's just say I was going to put 30 40 down anyway because I got the money so now yeah it's a play I can assume your mortgage but now when I assume your mortgage remember but if it's an FHA loan you're gonna still have that PMI see that even we're putting that amount down so it might not make sense for you but check this out if they have a VA loan even if you're not a veteran you can do an assumable mortgage with a seller who has who's a veteran who has a VA loan and VA loans have no PMI and they always have low rates so if you find a veteran who's selling a house right in that Pacifica situation even if you had to put a larger down payment you can still come off and win unassemble long strategy does the money does the money that you have to pay them the different like the difference let's say if I had to pay the 200 000. is that something that I like you as a seller can say you know what I don't need the hundred thousand just give me a hundred I mean no [ __ ] that why would I say that but it's an option something that happens behind the scenes or something that's on paper no it's on paper so you got to bring it it's cash to close right because now again remember we was talking about Garland Gardens and people selling house for dirt cheap or whatever okay then it messes up it messes up the value of everybody else's house but if I'm a seller and I have tons of equity I'm not desperate right you know what I'm saying but if I'm a seller who might just can't financially afford and I don't have a lot of equity in my house anyway now that me having an assumable mortgage can be attractive to a buyer now because instead of getting the market rates they can get what I have currently right right right now some mortgage is a process that could take 45 days it could take 60 days so you got to set your expectations too when you're doing a swimmable mortgage but it's a play if you have the money or you find a seller who doesn't have a lot of equity in the house what if you so how does this make it any different from if you're buying or taking over a loan from somebody let's say if your mom or somebody can't afford to make payments is the same thing um it could be the same thing right it could be if you don't assumable mortgage you could just do a quick claim deed if it's your mom and just do a quick claim D get ownership take over payments make the mortgage payments out of your own bank account six months 12 months and then refinance because now you're owner of the house and you can just get some Mom some money like hey this is my house here's a couple dollars and now I'ma take over right and I'm gonna take you off the mortgage I mean a deed and I'm gonna put myself 100 owner on the deed right you can do that too without you know going through an assumable mortgage process you can always do a gift to equity sale so if the mom has a lot of equity in the property you can she can gift the equity and you can use that as a down payment and close cost you can gift Equity absolutely you gotta have like 25 Equity because now you got to do at least 20 down payment with the equity and the closing costs but yeah there's a lot of plays in this damn I didn't think you could do that now my mind you all of this talk we're talking let me just say my disclaimer this is not for investment properties the same for properties and llc's please don't be in the comments asking these questions okay this is only for primary residences people yeah yeah that's crazy I don't even I didn't even know that so that's so the equity is based on the market basically and whatever Corrals is worth at the time correct so if mom had a house and it was 300 000 like 10 years ago and now it's worth 500 000 that 200 000 of equity is what she can give to me correct you don't get in your pocket though no but I'm saying where's that money go what is it it's used for the transaction it's you so she's selling it for 500 and she owes 300 but you tooks don't have no money yeah but you can afford those you can afford the payments right bet I'll give you a gift of equity let's just say she only wants a hundred thousand because you're my son right a profit for her pocket so she owes 300 so she's going to make the price four hundred thousand we're going to use the equity boom boom boom to do down payment closing costs the bank that she owes will get paid the 300 and her net proceeds will be 100K what she wanted damn there is a lot of plays this is there's a lot to this man there's a lot of layers to real estate well this is why I'm emptying the mortgage guy and I had to give you guys all the information that you need to execute at a very high level