Assumable Mortgage: What it is and How it Works

An assumable mortgage allows a buyer to purchase a home by taking over the payments on the sellers existing loan rather than obtaining a new loan.

One of the biggest benefits to a mortgage assumption is that your rate would be far below today’s current interest rates. To assume a loan, you must apply and be qualified by the seller’s lender but the approval process is similar to applying for any other type of mortgage loan.

Which loans are assumable?

FHA and VA loans are generally assumable if the new borrower qualifies with the sellers existing lender to take over the loan payments.

Conventional Fixed Rate loans contain a due-on-sale clause and are not assumable.

Do I need a down payment?

The current borrower has likely paid down some of the original loan balance and the home has also increased in value.  The difference between the sales price and the loan amount being assumed is your required down payment. 

One option for bridging that gap may be to use a Home Equity Line of Credit which the borrower would apply for at the same time they are qualifying for the assumable loan.  In some instances, the seller may be willing to do a seller carryback Note and Deed of Trust.

What are the Pros and Cons of an Assumable Mortgage

Pros

  • Lower interest rates
  • Qualifying for a higher loan amount – with a lower interest rate you can qualify for a larger loan.
  • Fewer closing costs – closing costs on assumed loans are usually lower than on a new loan and usually you will not need an appraisal.

Cons

  • Higher down payment
  • Ongoing mortgage insurance – FHA Loans have mortgage insurance payments for the life of the loan.

VA loan eligibility – If a non-veteran assumes a VA loan the original borrowers VA eligibility will not be available to him until the loan has been paid in full.

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To learn more about Assumable Mortgages reach out to one of our specialists now!

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Wrapping your head around Wrap transactions

When a buyer cannot qualify for a traditional mortgage loan it can make it rough for buyer and sellers alike! Closing the transaction using a wrap-around loan may be a great financing option for both parties.

What is a wrap-around loan?

A Wrap is a type of seller financing wherein the seller’s existing loan is wrapped by a secondary loan from a buyer to a seller.  The payment from the buyer is then used to pay the sellers existing loan. 

How does a wrap-around loan work?

In a typical real estate transaction, the buyer purchases the home with a loan provided by a conventional lender.  The seller uses the proceeds of the sale to pay off their existing mortgage on the home.

With a wrap loan the seller keeps their existing mortgage on the home, offers seller financing to the buyer and wraps the buyer’s loan into the existing mortgage. In this situation, the seller takes on the role of the lender.

The terms of the loan between buyer and seller should mirror or be higher than the sellers existing loan.  The buyer then makes the payment to the seller and the seller uses those funds to make the monthly payment on their existing loan.

Usually, a contract collection company is retained to ensure that both payments are made timely.

Example of a wrap-around loan

Tia is selling her home for $200,000 and has an existing loan balance of $100,000 at a 3% fixed interest rate. She decides to finance a loan for John to purchase her home.  Tia and John agree to a $40,000.00 down payment and a $160,000 wrap-around loan in favor of Tia at a 5% fixed interest rate.  John pays Tia monthly on his loan and Tia then uses that money to make the payment on her existing loan.  Tia can use the profit from John’s payment to continue to pay down her existing loan or keep the difference herself.

Normally the wrap-around mortgage will include a balloon payment due within 12-36 months.

Benefits of a wrap-around loan

Wrap-around loans can help sellers who are having a difficult time selling their home, it broadens the pool of buyers by making it easier for them to qualify.  For buyers it helps them to purchase a home that otherwise might be unattainable at today’s rates.

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To learn more about wrap-around transactions reach out to one of our specialists now!  

EMAIL OUR SPECIALIST NOW

We Close the Deals That Fit Today’s Market!

Did you know that Ticor Title has the resources and flexibility to assist with creative closings in our current market? In business since 1894, we have the experience to close the transactions that most other title companies can’t. 

  • Wrap Transactions –
    A Wrap is a type of seller financing wherein the sellers existing loan is wrapped by a secondary loan from buyer to seller. The payment from the buyer is then used to pay the sellers existing loan.
  • Mortgage Assumptions – 
    An assumable mortgage is a loan that can be transferred from one party to another with the initial loan terms remaining in place.
  • Double Closings –
    A double closing is the simultaneous purchase and sale of a real estate property.
  • Contract Assignments –
    A contract assignment allows a buyer / investor to assign their interest in a Real Estate Purchase and Sale Agreement to a third party (normally for a fee).

Contact us today to stay ahead of the market!

EMAIL OUR SPECIALIST NOW

Ticor Title Same-Day Solutions

At Ticor Title we believe that every successful closing begins with a great team. We understand what it takes to provide superior service to our clients and partners in the timeliest manner.  Our team of professionals go above and beyond to create a better closing experience by offering same-day signing/closing.

SAME-DAY SIGNING & FUNDING – YES WE CAN!

Because of our commitment to higher standards of service and the high degree of skill and efficiency of our escrow staff, Ticor Title offers same-day signing and funding on purchase and refinance transactions. We have the ability to work closely with our lending partners in order to provide escrow signing services, document delivery to the lender, and recording/closing in the same day. The result is that the buyer has a better experience at the end of the transaction and can get into their house sooner!

THE RIGHT CHOICE

Ticor Title is the company that can and will do what it takes to provide the higher standards required for the best possible closing experience. With our rich Pacific Northwest history, unmatched financial strength, and client-focused leadership, it’s clear that Ticor Title is the right choice!

ASK YOUR TICOR TITLE REPRESENTATIVE ABOUT SAME-DAY SOLUTIONS TODAY!

The West Seattle Bridge is Reopening!

It’s happening! After two and a half years the West Seattle Bridge will be opening again on September 18th! This will help provide easy access to our 4817 California Ave SW Branch for all our clients and we invite you all in for a cup of coffee!

Here are a couple things planned to celebrate the reopening!

COLLABORATIVE BREW: The photo and announcement are from The Beer Junction proprietor Allison Herzog:

To celebrate the opening of the West Seattle Bridge, several members of the West Seattle beer community collaborated on brewing a beer! Reunited is a West Coast IPA brewed at Good Society in collaboration with Beveridge Place Pub, Ounces, The Beer Junction, and Best of Hands Barrelhouse. We are planning to concurrently release our collaboration beer on Sunday, September 18th to coincide with the bridge reopening date and to welcome non-West Seattleites back to our beautiful peninsula. We plan to have the beer on tap all through the week of September 18th through the 24th, so stop by for a pint to celebrate!

PARTY PLAN: Another of those collaborators – the closest one to the bridge, in fact – has announced a party plan! From Ounces (3809 Delridge Way SW) co-proprietor Laurel Trujillo:

WS Bridge Opening Party at Ounces!
Saturday 9/17: 2-9 pm & Sunday, 9/18: 11 am-8 pm

We’re throwing a 2-day event to celebrate the last day on the WS Island and the Opening of the bridge! Woohoo! Event features food trucks, desserts, live music, and so much more! We’ll also be tapping Reunited IPA [explained above]. Event is FREE and family/dog friendly. Full event details and a schedule of events can be found here: ounceswestseattle.com/wsbridgeopen
The Saturday theme will be “Last Day on the Island”; the Sunday theme will be “Welcome (back) to West Seattle.

”The Saturday theme will be “Last Day on the Island”; the Sunday theme will be “Welcome (back) to West Seattle.”

Welcome Jami Higbee!

We are excited to announce that Jami Higbee has joined our Ticor Title Team! With 21 years of Title experience in Washington State she will be an invaluable benefit to our clients.

About Jami
Jami brings a wealth of knowledge and integrity to all aspects of her profession. Her dedication is unmatched in helping clients in all areas of title searches, title recordings, and examinations. Whether it be internal or external, she is a solver of complex transactions and is always willing to help.

In Jami’s free time, she spends time with her family, camping and playing softball, and loves sports.

“The truth is that teamwork is at the heart of great achievement.”

Jami Higbee
Senior Title Officer
Jami.Higbee@TicorTitle.com
425-434-4005

2825 Colby Ave Suite 300
Everett, WA 98201

Happy Labor Day!

Happy Labor Day from all of us at Ticor Title! Our office will be closed on Monday September 5th, 2022 in observance of the Holiday. Thank you!

We are pleased to announce that Mary Forrey has joined our Sales Team!

We are excited to announce that Mary Forrey has joined our Ticor Title Sales Team! With over 40 years of industry experience we know she will be an invaluable resource to you and your clients!

Why Ticor was the Right Choice

Mary chose Ticor because of the unique blend of services that help to enhance her workflow and provide the most efficient service to her clients. 

  • The commitment, vision and synergy of the leadership team.
  • The Ticor “Make it Happen” “Get to Yes” underwriting philosophy.
  • Our goal is to provide an exceptional closing experience for all parties to the transaction every time. We want you back every time you have choice.
  • Innovative agent tools – We’re committed to help you succeed and grow your business.
  • Competitive Fees
  • National Strength, Local Touch
  • Enhanced Service & Support
  • Improved Accessibility
    Text your team! 844-698-4267

About Mary

With 40 plus years of experience in the industry, I was curious to know more about Ticor when President John Bloomquist reached out to talk. I am so glad we met!  I knew right away I was very interested in what Ticor had to offer for both myself and my clients.

I’m excited for this chapter in my career to work with such a great team of people and to learn about the tools available to support my clients with their business.

I’m looking forward to being a Grandma. My home is my favorite get away where I love to garden and enjoy the hummingbirds. I have a passion for good music and I’m always up for a good concert.  Favorite place to vacation is Arizona.  I was told once I have a quirky sense of humor.  I’ll take it as a compliment. 

“I love to laugh. It’s good for the soul!”

Mary Forrey
Sales Executive
Mary.Forrey@TicorTitle.com
206-406-1636

4817 California Ave SW
Seattle, WA 98116

Breeze Through Disclosures with Ticor Title

You work around the clock making sure your clients’ experience is the best it can be. Now with Breeze, speed through disclosures and get a little “me-time” back.

Disclosures On-the-go  

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Contact us today for a demo!