Can My Mortgage Make Me Money?

Understanding FHA and VA loans.

They always say it costs money to make money but I don’t think that anyone ever thought that paying a mortgage could make you money. A few months ago I went to a fantastic Real Estate seminar that talked all about this concept and how it applies to homeowners all over the country.

Currently mortgage rates are at an all time low, agreed? Imagine if 10 years from now you could guarantee your home to transfer to a new buyer at that same low rate that you got today. It would seem unlikely, but in fact it can and will happen.  You see two particular types of loans FHA and VA are the only loans that are, and will be, assumable to a new buyer.

So let’s say today in 2012 you purchase your home with a rate of 3.5% and in 10 years, 2022, the going rate is 7%. The buyer is debating between your house for $400,000 with a 3.5% rate or another house for $400,000 with a 7% rate. Your house will actually be worth more to that borrower based on the assumable rate.

The statistics they are using for calculation purposes is approximately $10,000 for every point. That would make your house actually worth $435,000 based on
that theory. When you think about the number of FHA loans being approved every day in this country that could have a very large affect on the future of Real Estate.

I hope that the VA starts giving lots of loans to our Soldiers coming home and
that this will be just an added benefit for them. They deserve at least that
and so much more.

So before you take that conventional mortgage think again and ask your mortgage broker about an FHA, it may you make you some money back
in years to come.


Written by Heidi Zizza Realtor mdm realty inc.


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