Roam Company, a real estate company that recently launched, theorized a great solution to the problem of sellers and buyers and help sellers transfer their existing mortgages to willing buyers.
Roam company wants to help buyers snag low mortgage rates (Photo: Business Wire)
Roam Company Wants to Help Buyers Snag Mortgages for As Low As 3%
According to The Truth About Mortgage, a newly launched real estate company called “Roam Company” has launched a service to make assuming a mortgage painless for both sellers and buyers.
The goal of Roam company is to help more buyers take advantage of the many low-rate mortgages in existence via loan assumptions – this includes FHA loans and VA loans, both mortgages can be assumed by home buyers.
Would the Theory of Roam Company Actually Work?
According to the Motley Fool, Roam Company’s idea is a great theory. However, there is a problem which is that many mortgages won’t qualify to be transferred from one borrower to another as mortgage lenders do not tend to like assumable loans because it creates administrative work for less money.
A mortgage lender today would rather take the time to write a $200k loan at 7.76 percent than deal with the paperwork that allows the borrower to transfer a $200k loan at 3% to somebody else.
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