What Happens to My PMI or MIP After an Assumption?

What Happens to My PMI or MIP After an Assumption?

Sellers with FHA loans ask this one constantly, and the answer is cleaner than most people expect. Ryan breaks down the difference between PMI and MIP, why VA loans do not have monthly mortgage insurance at all, and exactly what happens to that FHA insurance payment the day an assumption closes. Short version: it transfers to the buyer and the seller is done. He also walks buyers through the real math on taking over an FHA loan with MIP included, showing that even with $183 a month in insurance added to the payment, you are still saving $765 a month compared to a conventional loan at 6.5%. That is over $9,000 a year. Ryan also covers the refinance path for buyers who eventually want to drop the MIP and when that move actually makes sense. If MIP has been a sticking point in your decision to buy or sell through an assumption, this episode puts the number in perspective. Hit up assumableguy.com or DM @the.assumable.guy on Instagram.

Do I Need a Real Estate Agent to Assume a Mortgage?

Technically no. Legally there is nothing stopping you from assuming a mortgage on your own. But Ryan makes a pretty convincing case for why going solo is one of the most expensive mistakes a buyer can make in this process. He breaks down why 75% of assumable properties never show up on Zillow or Realtor.com, what happens when a listing agent confuses an assumption with a subject-to deal and shuts your offer down before it even gets read, and why the offer itself requires assumption-specific clauses and deadlines that most agents have never written. He also walks through two real deals where his team negotiated a $1,000 seller concession on a $430,000 home at 2.99% and $7,000 in inspection resolution on a 2.375% deal, results that do not happen by accident. The banks are adding friction on purpose and knowing how to push back is half the battle. Hit up assumableguy.com or DM @the.assumable.guy on Instagram.

How Do I Explain Assumptions to My Listing Agent?

Most listing agents are not trying to block your assumable sale. They genuinely have no idea how it works because assumptions were irrelevant for 40 years and nobody trained them on it. Ryan walks sellers through exactly how to explain it, starting with the most common misconception where agents confuse assumable mortgages with subject-to deals, which are two completely different things. He covers how to show your agent the math, how to address the timeline concern, and why marketing your assumable rate brings in more buyers across the board, not just assumption buyers. He also shares a hack for sellers interviewing listing agents and a tip for buyers on how to handle a confused listing agent when writing an offer. If your agent has been hesitant or flat out told you it can't be done, this episode gives you the exact language to turn that conversation around. Hit up assumableguy.com or DM @the.assumable.guy on Instagram.

What if the Home Appraises for Less Than the Purchase Price?

A low appraisal in a traditional deal can blow the whole thing up. In an assumption it works differently, and most buyers don't know why. Ryan breaks down how the appraisal affects an assumed loan versus a conventional one, why a $25,000 appraisal gap might actually be worth it when you're saving $200,000 in interest over the life of the loan, and what happens when a second mortgage lender gets involved and needs the numbers to pencil. He also covers how his team handles low appraisals in real deals, from going back to the seller on price to negotiating inspection concessions to close the gap. The math is what matters, not the appraisal number by itself. If a low appraisal has been sitting in the back of your mind as a reason to hesitate, this episode walks you through how to think about it the right way. Hit up assumableguy.com or DM @the.assumable.guy on Instagram.

Can Two People Assume a Mortgage Together?

Yes, two people can assume a mortgage together and it is one of the most underused strategies in the assumable world right now. Ryan breaks down how co-borrowing works across every scenario: married couples, unmarried partners, friends, siblings, and investment partners. Two incomes mean a stronger debt-to-income ratio, which makes qualifying easier, and splitting the equity gap makes the upfront cash way more manageable. He walks through a real deal where two buyers got into a $440,000 home at 2.99% with only $8,000 each out of pocket, covers how veterans can substitute entitlement to free up a VA seller, and runs the math on a co-borrower paying $700 a month on an assumed loan versus $1,900 on their own conventional loan. If you've been sitting on the sidelines thinking you can't afford an assumable mortgage alone, this episode is worth a listen. Hit up assumableguy.com or DM @the.assumable.guy on Instagram.