logo
This company can help you get the low mortgage rates of years ago.

This company can help you get the low mortgage rates of years ago.

USA Today6 days ago
Consider a typical home in a typical American community that sells to a new owner who takes out a typical mortgage. The monthly payment will be about $2,700, according to a recent analysis from Redfin.
But the person who's selling the home likely has a monthly payment that's as much as $1,000 less, if they bought the home a few years ago at a rock-bottom low rate of 2-3% - or refinanced during that period.
Wouldn't it be nice to turn back time?
A new company offers to do just that. RetroRate offers a software tool that scans public real estate listings on websites like Zillow or Realtor.com to show which homes for sale have assumable mortgages – those that can be taken over by a home's new owner.
Most mortgages guaranteed by government agencies, like the Department of Veterans Affairs or the Federal Housing Agency, can be assumed, as can a very few guaranteed by Fannie Mae and Freddie Mac.
Most agents and others in the real estate industry know such loans are out there, but they can be tricky to find. Most homeowners aren't accustomed to sharing details about their mortgages when they sell their home.
Across a sample of ten states, RetroRate estimates that more than 22% have an assumable loan, with an average interest rate of 4.42%, working out to average monthly savings of $1,037.
Drawbacks to assumable mortgages
There are some reasons why buyers and their agents may shy away from an assumable mortgage, however. The most critical is that they can take time to process. That's because the company responsible for transitioning the mortgage to the new buyer is not a lender, but the existing mortgage servicer.
Servicers are the companies that handle mortgage payments, making sure they're paid on time and that a borrower's insurance premiums and taxes are taken care of. Their business processes aren't set up to work with borrowers before they become owners, and they usually don't have many staff members dedicated to handling assumptions.
RetroRate makes its money by offering a concierge service. For a fee equal to 1% of the purchase price of the home, the company walks the buyer and the seller through the entire process, explained Andy Taylor, RetroRate's founder. Taylor is an industry veteran, having spent time at Redfin and CreditKarma.
The complaints about servicers get no argument from Courtney Thompson, executive vice president at CMG Servicing. She likens the current interest in assumable mortgages to the years after the financial crisis, when servicers had to help homeowners who could no longer afford their homes but wanted to avoid foreclosure: a new, time-intensive business process that they were simply ill-equipped to manage.
Still, Thompson said in an interview, 'Math is math. People should do (assumptions) if they can and it works for all sides.'
'Piggyback' mortgages for the 'equity gap'
Another key challenge is that mortgages that can be assumed are usually smaller than the purchase price of the home today. Consider a home purchased in 2022 for $500,000, using a $450,000 mortgage. There may be $400,000 left on that mortgage – but the home is probably now worth more like $600,000. The buyers will have to either cover the difference with money they pay out of pocket, or take out a small second mortgage or some other kind of loan.
That's the biggest concern for real estate agent Andi DeFelice, who works with lots of first-time buyers as the owner and broker of Exclusive Buyers Realty in Savannah, Georgia.
For the lower monthly payment alone, DeFelice said, she'd love to consider a tool like RetroRate. But if it comes to having to put down hundreds of thousands in equity, an assumable mortgage may simply be out of reach for many buyers. Yet 'it could definitely be something to put in our toolbox,' she told USA TODAY.
Evan Tando is a San Diego-based mortgage broker and real estate agent who firmly believes assumable mortgages help not only buyers, but sellers as well.
He was early to recognize the potential in assumptions, when interest rates first started spiking a few years ago. The process could take as much as six months, he said. Now it's a bit shorter – as little as 45 days in some cases – but a buyer should definitely be prepared for a longer process than with a new mortgage, he says.
More: Down payments are the biggest homeownership hurdle. Why is Washington making them scarcer?
Tando had a chance to see how RetroRate's concierge team worked when it assisted him on a listing with an assumable mortgage, and thinks the company has great promise. For buyers, he said, assumable mortgages are a 'game changer.' But they may also change the calculus for sellers.
'I think it is very, very important if you're selling a home to be sure that you have a listing agent that takes the time, takes advantage of really marketing that assumable loan,' Tando said. Even if a seller doesn't wind up making use of the fact that her existing mortgage is assumable, the increased interest it will likely spark should drive up the price of the home, he said.
'Knowing what's out there is really eye-opening especially if you're in the home search,' Taylor said. 'These things are out there and they're really a great deal. It's just about finding that gold.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump's trade wins shock the experts — who are blind to business reality
Trump's trade wins shock the experts — who are blind to business reality

New York Post

time10 minutes ago

  • New York Post

Trump's trade wins shock the experts — who are blind to business reality

If America is in the midst of a trade war, the question we have to ask is: Are we tired of winning yet? President 'Donald Trump reaps $50bn tariff haul as world 'chickens out,'' reads the Financial Times headline. 'Only China and Canada have retaliated against US president's tariff war,' its subhead adds. 'In the Trump-dominated global economy, the US gets plenty but gives nothing in return,' reads a rueful post on X from Axios — another publication with an upmarket readership — promoting an article titled, 'Trump trade deals prove access to the US still matters above all else.' Populist publications have a different take on Trump's spate of trade victories. 'Trump's trade deal bloc — let's call it The Free World — now encompasses 57% of global GDP . . . 40% of total global trade in goods,' and '18% of the world's population,' according to Breitbart's John Carney. The president has only been in office six months, and his tariffs haven't even been in place that long, but already the results are undeniable. At a time when there otherwise seems to be no end to federal deficits, Trump's trade policy put the federal government in the black for the month of June, with a $27 billion surplus — and, as it happens, about $27 billion in tariff revenue. It's one thing that Trump so often surprises political opponents who underestimate him at election time and can't understand the root of his appeal. What's more remarkable is Trump seems to defy the very laws of economics — or rather, the law as laid down by economists. Other social sciences have lately lost credibility thanks to a 'republication crisis' that shows how the results reported in leading journals of psychology and other fields all too often fail to be repeated when experiments are conducted anew and data are re-examined. Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! Will the economics profession — whose mainstream is fervently in favor of free trade and is convinced tariffs are madness — face a similar reckoning for getting this test wrong? Trump can do things the economists say can't be done because he approaches trade the way he conducts his real-estate business: It's a negotiation, and leverage is what counts. Precisely because the United States has such an enormous trade deficit with the rest of the world — amounting to more than $918 billion in 2024 — other nations depend on access to our market as an outlet for their goods. The size and wealth of the American consumer base is unmatchable, and countries that get cut off from it can't easily make up the difference by selling more goods and services somewhere else. Whole industries in Europe and Asia would collapse without access to the American consumer. Trump is willing to give them access — for a price. Instead of using punitive tariffs to exclude foreign goods altogether, Trump is willing to strike a deal with anyone to allow goods to be sold in America at a price that makes the trade worthwhile for Americans and foreign companies alike. The hitch: The deal must be on terms favorable for American workers and industry. The president's arrangement with the European Union levies a 15% tariff on most EU goods — but that's peanuts compared to the 30% Trump was threatening if Europe didn't cooperate. The deal calls for new European investments of $600 billion in America, as well as for EU members to buy more energy and military equipment from us. The 15% tariff is higher than what European producers were paying before Trump returned to the White House — high enough that American producers will get some protective advantage, but not so high that foreign companies won't be able to compete. Start your day with all you need to know Morning Report delivers the latest news, videos, photos and more. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters That's crucial because competition is what keeps prices down for American consumers. Foreign firms can't easily 'pass on' a tax on their goods — which is what a tariff is — to the Americans who buy their products when those same Americans can choose from domestic producers instead. The modest protection a 15% tariff affords gives more investors at home a reason to put their capital into American companies — which is good for our workforce and consumers alike. It means more jobs and more goods; more money in Americans' pockets and more stock on the shelves, which keeps prices down. There's risk in all this, but the upside opportunity is much greater, as entrepreneurs here and abroad recognize. For the Europeans, it's a no-brainer: The American market is so rife with profit possibilities that a 15% access fee is a very modest cost of doing business. American businesses should recognize their opportunity as well — they're native to a market the entire world is desperate to be in, and they should use that advantage to the fullest, investing at home and making the sales that foreign firms are so eager to make here. In this trade war, all Americans are winning — except, perhaps, the overeducated prisoners of the Ivory Tower. Daniel McCarthy is the editor of Modern Age: A Conservative Review and editor-at-large of The American Conservative.

Five takeaways as Trump's trip to Scotland nears conclusion
Five takeaways as Trump's trip to Scotland nears conclusion

The Hill

time40 minutes ago

  • The Hill

Five takeaways as Trump's trip to Scotland nears conclusion

President Trump will conclude his four-day trip to his ancestral homeland of Scotland on Tuesday. The final engagement on Trump's official schedule before his return is the opening of a new golf course, in memory of his late mother, in Aberdeen, on the east coast of Scotland. That's a fitting conclusion to a trip that has included some Trump brand promotion in addition to official business. But it's not as if the news has stopped during Trump's Scottish sojourn. Here are the five biggest takeaways. U.S. gets the better of a trade deal with the European Union The announcement of a trade deal with the EU was plainly the biggest substantive moment from the trip. Trump and European Commission President Ursula von der Leyen put the finishing touches to the agreement on Sunday, meeting at Trump's other Scottish golf course at Turnberry. There was still some vagueness around specifics but the basic gist of the deal is that European imports to the U.S. will mostly be tariffed at 15 percent. From the EU's perspective, the main selling point in such a deal is that it saves the bloc from the 30 percent tariff rate that would have kicked in this Friday in the absence of a new agreement. However, the 15 percent tariff rate is higher than the 10 percent United Kingdom Prime Minister Keir Starmer helped negotiate for his nation in May; higher than was previously the case; and largely unleavened by any major concessions from the American side. It's no surprise, then, that the deal has got an adverse reaction from many commentators in Europe, who accuse their leaders of selling the continent short. But Trump doesn't care much about that. He can claim a victory here – so long as his tariff regime overall doesn't set off the inflationary cycle that many economists have long predicted. Hunger in Gaza creates pressure on Trump The deepening catastrophe in Gaza produced some unpredictable moments – but not much clarity – from Trump during his trip. Malnutrition among Gaza's population of 2.1 million people has worsened precipitously, after Israel initially cut off aid and food to the strip for more than two months beginning in March. More recently, small amounts of aid have been allowed to enter, though humanitarian groups consider those volumes to be woefully insufficient. According to a World Health Organization statement released on Sunday, there have been 63 malnutrition-related deaths in Gaza in July, including 24 deaths of children under five. Images of skeletal children have sparked fresh outrage in much of the world aimed at Israel and its prime minister, Benjamin Netanyahu. As recently as Sunday, Trump didn't display much urgency on the topic, placing blame on Hamas and complaining that the U.S. had not been shown sufficient gratitude for aid it had already supplied to Gaza. By Monday, there was at least a tonal difference from the president – even though he repeated his comments about a supposed lack of gratitude. Asked whether he agreed with an assertion from Netanyahu that there was no starvation in Gaza, Trump replied, 'I don't know. I mean, based on television, I would say not particularly, because those children look very hungry.' Trump also said, 'That's real starvation. I see it and you can't fake that.' British government sources told the liberal-leaning Guardian newspaper that Starmer had 'privately pressed Trump on Gaza during the trip.' Trump also promised the U.S. would set up food centers in Gaza, though details were sparse. The key question, of course, is whether anything substantive will change in American policy toward Israel. On Ukraine, Trump directs more ire at Putin One of the most unexpected developments of recent months has been Trump shifting toward a harder line on Russia. That idea seemed fanciful back in late February when Trump and Vice President Vance berated Ukrainian President Volodymyr Zelensky in the Oval Office. But Trump has grown frustrated with Russian President Vladimir Putin's stubbornness in continuing to pursue the war begun with his invasion three and a half years ago. Trump declared himself 'disappointed in President Putin' during remarks on Monday. He also suggested he would tighten a deadline for peace negotiations to '10 or 12 days.' Putin has not seemed overly concerned with Trump's deadlines previously but the remarks were nonetheless an indicator of the president's growing frustration with the Kremlin. The Epstein saga proves inescapable Trump has proven unable to put the controversy over Jeffrey Epstein behind him – and his Scottish trip did not change that. Just as before, it was words and actions from Trump and his allies that, at least in part, kept the matter in the headlines. On Monday, Trump suggested that his falling-out with Epstein two decades ago had its roots in the disgraced financier repeatedly hiring staff away. 'He stole people that worked for me,' Trump said. This explanation had not previously been offered as a reason why Trump had broken off contact with Epstein – a move that came before Epstein was charged with any criminal offense. Previous interpretations leaned on the idea that Epstein had engaged in some kind of inappropriate behavior that had come to Trump's attention, or that the two men had become estranged because of a competitive battle over real estate. Separately, Monday also saw reporting that Trump's legal team wants media mogul Rupert Murdoch deposed as soon as possible in his lawsuit for defamation against the Wall Street Journal. The legal filing raised the issue of 'health issues' for Murdoch, who is 94. Trump is suing the Journal over a report that a letter bearing his name was included in an album to marking Epstein's 50th birthday in 2003. Trump says the letter is fake. In any event, now that Reps. Thomas Massie (R-Ky.) and Ro Khanna (D-Calif.) are mounting a bipartisan bid to force the Department of Justice to give up more documentation about Epstein, Trump will need to recognize that the issue won't be going anywhere for a while. Plenty of publicity for the golf courses Critics have long lamented overlaps between Trump's political activities and his business interests. They will further irked by the Scotland trip, which was at least as much about golfing as about political business. But Trump seems sure to appreciate the massive amount of free publicity he has just got bestowed upon his Scottish courses.

Stocks hold at record, dollar jumps on trade hopes: Markets wrap
Stocks hold at record, dollar jumps on trade hopes: Markets wrap

Miami Herald

time40 minutes ago

  • Miami Herald

Stocks hold at record, dollar jumps on trade hopes: Markets wrap

Wall Street traders left stocks at all-time highs while the dollar climbed the most since May, with a tariff deal between President Donald Trump and the European Union bolstering hopes for an extension of a China trade truce. Treasuries edged lower. The start of a week that will set the tone for the rest of the year in markets saw a dollar gauge up nearly 1%. The euro slid the most in over two months. The S&P 500 briefly topped 6,400 to close little changed. Treasuries barely budged amid mixed results from U.S. debt sales. Oil rose as Trump said he'd shorten his timeline for Russia to reach a truce with Ukraine. In the run-up to the Aug. 1 U.S. tariff deadline, traders will go through a raft of key data from jobs to inflation and economic activity. The big event comes Wednesday, when the Federal Reserve is expected to keep rates unchanged. Then there's a string of big-tech earnings, with four megacaps worth a combined $11.3 trillion reporting results. "This is about as busy as a week can get in the markets," said Chris Larkin at E*Trade from Morgan Stanley. "This week could make or break that momentum in the near term." U.S. and Chinese officials finished the first of two days of talks aimed at extending their tariff truce beyond a mid-August deadline and hashing out ways to maintain trade ties while safeguarding economic security. Canada Prime Minister Mark Carney said his government is still deep in trade talks with the Trump administration. The Treasury jacked up its estimate for federal borrowing for the current quarter to $1 trillion, mainly due to distortions from the debt limit. On Wednesday, the department will announce its plans for note and bond sales over coming months - which dealers widely see as staying unchanged. Speaking in Scotland on Sunday to announce the EU deal, Trump gave a brief update on Washington's relations with Beijing. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," he said without elaborating. "It is possible that as more trade deals are announced, the level of uncertainty that has hovered over business and the economy will ease," said Brent Schutte at Northwestern Mutual Wealth Management Co. "Additionally, the impact of final trade deals could be less than originally forecast after the April 2 announcement of reciprocal tariffs." To Thierry Wizman at Macquarie Group, while the dollar's strength today may reflect the perception that the new EU deal is lopsided in favor of the U.S., it may also reflect a feeling that America is reengaging with its major allies. "Whether we agree or not with the use of tariffs and the deals announced, we are getting the big ones out of the way which will allow American businesses to adjust and plan, for better or worse," said Peter Boockvar at the Boock Report. "And we can now focus on how this all plays out." Fed Chair Jerome Powell and his colleagues will step into the central bank's board room for a two-day meeting starting Tuesday to deliberate on rates at a time of immense political pressure, evolving trade policy, and economic cross-currents. In a rare occurrence, policymakers will convene in the same week that the government issues reports on gross domestic product, employment and the Fed's preferred price metrics. Forecasters anticipate the heavy dose of data will show economic activity rebounded in the second quarter. While the stock market is moving sideways after a solid run, "if we get no surprises in earnings and some dovish comments by the Fed, it's likely we'll see yet more new highs by the end of the week," said Louis Navellier, chief investment officer at Navellier & Associates. "We do not expect the Federal Reserve to cut interest rates on Wednesday, but it's possible that they make a stronger signal that cuts are on the horizon in the fall, especially as the inflation data continues to stay muted even in this tariff environment," said Rick Gardner at RGA Investments. Gardner also says that while stock market valuations are high, that in and of itself is not a reason why valuations can't expand even further from here. In fact, this earnings season is off to a solid start, and all eyes will be on results from Microsoft Corp. and Meta Platforms Inc. on Wednesday, and Apple Inc. and Inc. on Thursday. So far, Corporate America appears to be taking tariffs in stride. With about a third of S&P 500 firms having reported, roughly 82% have beaten profit forecasts, on track for the best quarter in about four years, data compiled by Bloomberg Intelligence show. Progress in trade negotiations will take the S&P 500 to a third consecutive year of 20% gains, according to Oppenheimer Asset Management's John Stoltzfus, a feat unseen since the late 1990s. He raised his year-end target for the U.S. benchmark to 7,100. Some market forecasters including Morgan Stanley's Michael Wilson have turned more optimistic about the S&P 500 as they expect earnings to remain upbeat. The technical evidence suggests a broadening of participation in equities off the April low, according to Craig Johnson at Piper Sandler. "Despite a slight easing in momentum as investors await earnings, the combination of several major indices at all-time highs and improving market breadth continues to draw investors off the sidelines, offering opportunities to buy the dip," he said. At RBC Capital Markets, Lori Calvasina says it would be premature to write off the impact of tariffs on inflation and corporate earnings. "It also poses a risk to the path of stock prices if company outlooks for 2026 don't end up being as rosy as investors have been anticipating," she noted. The S&P 500 is trading around 22.5 times projected earnings, compared to a 10-year average of 18.6. That's sparked concerns that there may be little room for error. The stock market's stunning rebound and resilience have again emboldened equity investors, who have developed muscle memory around 'buying the dip'," according to Lisa Shalett at Morgan Stanley Wealth Management. "With volatility having decoupled from stress indicators, passive indexes have ground to new highs, while the most speculative corners of the market have begun to lead," she said. "Complacency is elevated, and valuations are rich. In this environment, we want to be stock-pickers." To Mark Hackett at Nationwide, this may be the most compelling intersection of technical momentum and fundamental strength we've seen in a long time. "The S&P hasn't had a 1% move in over a month and yet bears have capitulated," he said. "No one's willing to short this market, and even typically skeptical investors are getting pulled in. While it's not a blow-off top yet, the odds of that happening are rising." If sentiment keeps shifting and dip buyers remain aggressive, we could see a classic melt-up – and any near-term weakness over the next several weeks is likely to be bought aggressively, he said. "However, for now, bears are hibernating through the summer," Hackett concluded. "We would lean toward being more bullish than bearish on U.S. stocks through year-end, but not outside of a balanced portfolio based on risk," said Anthony Saglimbene at Ameriprise. "However, that view is contingent on positive corporate profitability and economic growth this year, avoiding worst-case tariff scenarios, and investors remaining willing to 'buy the dip'." Markets have found reassurance in several developments, according to Invesco Global Market Strategy Office. "For one, the worst fears that manifested around trade in early April haven't materialized, and key trade agreements are being signed," the strategists said. "Tariff rates remain vastly elevated compared to last year, but they appear manageable. In our view, it's likely that the cost can be shared between businesses and consumers without a meaningful impact on growth or inflation." Invesco strategists also noted that what should really matter for stocks in the medium and long-term is earnings. "After a strong market rally, investors should prepare for renewed volatility in the near term," said Mark Haefele at UBS Global Wealth Management. "Potential market dips could offer an opportunity for investors to build long-term exposure to stocks." Corporate Highlights: -Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division. -Texas Instruments Inc. was upgraded to outperform at Wolfe Research, which said the chipmaker is "near the end" of a spending cycle. -Cisco Systems Inc. was downgraded to inline at Evercore, which mentioned valuation following recent gains. -Nike Inc. was raised to overweight at JPMorgan Chase & Co., which cited the earnings impact of the sportswear maker's five-pronged multi-year recovery plan. -Albertsons Cos. demanded that Kroger Co. provide details on personal conduct that led the company to replace its chief executive officer, who shepherded the failed $24.6 billion takeover that's now the focus of litigation between the two companies. -PayPal Holdings Inc. will soon allow businesses to accept more than one hundred cryptocurrencies at checkout. -Roche Holding AG plans to test whether an experimental medicine can prevent Alzheimer's disease symptoms in high-risk people, its latest investment in one of the most failure-prone areas of drugmaking. -Arrowhead Pharmaceuticals Inc. said Monday that it's owed a $100 million milestone payment from Sarepta Therapeutics Inc. within the next two months, pressuring the beleaguered biotech company just days after it stopped selling its biggest drug due to safety concerns. -EssilorLuxottica SA posted better-than-expected revenue in the second quarter, as the world's biggest eyewear maker showed strong gains in Europe and pressed ahead with its smart-glasses initiative. -Warner Bros. Discovery Inc. announced the names of the two companies resulting from a planned separation of the streaming and studios business from its cable-TV networks. Some of the main moves in markets: Stocks -The S&P 500 was little changed as of 4 p.m. New York time -The Nasdaq 100 rose 0.4% -The Dow Jones Industrial Average fell 0.1% -The MSCI World Index fell 0.3% -Bloomberg Magnificent 7 Total Return Index rose 0.8% -The Russell 2000 Index fell 0.2% Currencies -The Bloomberg Dollar Spot Index rose 0.8% -The euro fell 1.3% to $1.1592 -The British pound fell 0.6% to $1.3355 -The Japanese yen fell 0.6% to 148.56 per dollar Cryptocurrencies -Bitcoin fell 0.6% to $118,128.17 -Ether fell 0.6% to $3,802.22 Bonds -The yield on 10-year Treasuries advanced two basis points to 4.41% -Germany's 10-year yield declined three basis points to 2.69% -Britain's 10-year yield advanced one basis point to 4.65% Commodities -West Texas Intermediate crude rose 3% to $67.10 a barrel -Spot gold fell 0.6% to $3,317.25 an ounce Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store