Supplements: benefits of this assumable rate mortgage, we can compare the total cost of two hypothetical loan scenarios over a 30-year period. Let's calculate the approximate monthly payments and total payments for each mortgage. For a $400k mortgage at 2.75%: The monthly payment can be calculated using a loan amortization formula, which comes to approximately $1,632.96. The total interest payments over 30 years would amount to around $187,867.30. For a $350k mortgage at 6.75%: The monthly payment, calculated similarly, is approximately $2,270.09. The total interest payments over 30 years would amount to around $467,233.60. Comparing the two options, the lower interest rate of 2.75% for the $400k mortgage results in significantly lower monthly payments and a total interest cost of $187,867.30. On the other hand, the higher interest rate of 6.75% for the $350k mortgage leads to higher monthly payments and a total interest cost of $467,233.60. Thus, opting for the $400k mortgage at 2.75% would provide the benefit of lower monthly payments and save you approximately $280k over the 30-year term compared to the $350k mortgage at 6.75%. This low 2.75% assumable rate mortgage brings a host of benefits to both buyers and sellers. With its advantageous interest rate, simplified financing process, potential cost savings, and flexibility, this type of mortgage offers an attractive proposition in today's real estate market. By understanding and harnessing the benefits of this property's low 2.75% assumable rate mortgage, homebuyers can make informed decisions that align with their financial goals.
