Wanna Save $18,000 Per Year on a $500,000 Mortgage?

Chris Koerner

Roll up your sleeves and pull up a stool, we're about to get creative.

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You know what's cooler than 8% rates? 3% rates.

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And you know how many homes in the US have 2 - 6% rates right now? About 27,000!

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In fact, if you find your dream home there's a 10-20% chance you can get a ~3% mortgage on it.

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Do you work in real estate? Even better, because I have another treat just for you, too. Stick with me.

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‍Here's how:

‍The best way to get a 3% mortgage today is by assuming the existing mortgage on a home. To "assume" means to take the loan and payments over from the current borrower, instead of getting your own mortgage. (Stop rolling your eyes, real estate agent, I know you already know this, just stick with me.) Yes, you'd still have to qualify with the bank. This is only possible with gov-backed loans.

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Such as:

‍VA: Provided to US veterans and their families

‍FHA: Provided by the Federal Housing Administration to low-moderate income borrowers (most common of the 3)

‍USDA: Provided by the US Department of Agriculture to homes and land in rural areas.

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Here's the thing, most homebuyers and sellers have no idea this is possible. Go to Zillow right now and search my the keyword "assumable". Less than 1% of listings have that word in the description, but around 24.3% of homes for sale have assumable mortgages! Assume that ~80% of those homes were purchased more than a couple years ago and locked in a low rate. That's 1 in 5 homes, give or take.

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Most likely:- The homeowner has no idea this is possible- The realtor has no idea this is possible.

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How do I know? My wife is a realtor and this concept is foreign to most of the agents she talks to. Guess what the monthly savings is on a $500k house on a 8% vs 3% mortgage? $1,500+! If you live in the home for 5 years you'll save $78k. It's worth a little legwork on the front end, trust me.

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Here's what you do:

1. Go house shopping online.

2. Find 20-30 homes that you like.

3. Take this message and copy/paste it to all the agents via text: Hello! I LOVE your listing on 123 Maple. Do you know if the mortgage is assumable (FHA, USDA or VA loan)? VERY interested if so! Please let me know. I'd be interested in using you as my buyer's agent as well. - firstname

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Lots of **IFs going on here:- The seller might not want you to assume the mortgage- The realtor might not respond- Your state may not allow "dual agency," AKA the realtor represents both parties- You might not even want to include that dual agency offer in your text. The idea is to incentivize the agent to get creative and not ignore your request. They'll make twice as much!- With FHA loans you'll need to pay mortgage insurance, which you may need to pay no matter what- You may need to put more money down, to cover the delta between the purchase price and loan amount. BUT, you don't have to be a veteran to assume a VA loan.

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You can also use a buyer's agent to ask around and find an assumable home for you.There are 2,700 homes for sale in Dallas, TX. Only SEVEN of those have the word assumable in the description.

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‍Are you an agent? SPECIALIZE IN THESE! Most agents are completely ignorant to assumable loans. How do I know this stuff?

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I just interviewed the owner of one of the biggest assumable loan marketplaces in the world (think Zillow for only assumable loans) on my podcast and he is educating agents all day about this stuff.

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His business is fascinating, and whether you're a homebuyer or an agent, his segment is worth a listen.

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He also has a assumable loan certification program for agents to help you find more deals here: https://assumablecert.com/a/2147862032/RF3qtaQn…

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‍The assumable loan segment can be found on the 14:07 timestamp here:Youtube: https://youtube.com/watch?v=x6W4RX3CM4w&list=PL5doEXwy4gHU8wUKungaTRq_J5PjWPYNc&index=20…

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‍The Koerner Office on Apple Podcast: https://podcasts.apple.com/us/podcast/the-koerner-office-live-call-in-business-advice-dave/id1705154662…

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‍The Koerner Office on Spotify: https://open.spotify.com/show/1ciAGBave5Cv9hdvB9SFAh?si=wXEU2YEURmyBVBEDGCFP2Q&nd=1&dlsi=93ce528ca56145d8…

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‍Would love a follow if you found this helpful: @mhp_guy