[quote=bearishgurl]IMO, current MIP is a VERY high price to pay for “assumability.”
Acc to some on this board . . . ahem . . . “assumability” means nothing because a buyer who wishes to assume today must jump thru all the same hoops as a buyer qualifying straight away for a new mortgage.
Rich, do you know what the “assumption fee” is on FHA loans?[/quote]
Whether the MIP is a high price to pay depends on future interest rates. I agree that $400 per month on $700K is a lot to pay to assume a 4% rate in a 4% rate environment (~today’s rates)
BUT, what if rates go up to 7%. At that point $400 per month is a good deal to get a 4% interest rate.
