[quote=SK in CV][quote=Rich Toscano]But this actually doesn’t really matter. Even if rates went up but home prices didn’t go down, I’d still be able to offer a lower-than-market rate, which would presumably increase the market price for the home from what it would have been with a non-assumable loan.
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But, on the other hand, if rates went up and prices did fall, you’re upside down and the value of that assumable loan just disappeared. (Maybe. I have no idea if upside down loans are assumable. I’m guessing that an appraisal is part of the assumption process. Though I’m also assuming that reasonable standards are included in FHA rules. What am I thinking?)[/quote]
Good point, SK, but on the other hand, having an assumable loan should increase the value of the home from what it otherwise would have been… so maybe you won’t be upside-down after all?
