SACRAMENTO, Calif. — ABC10 anchor Lora Painter helps answer a viewer’s question about today’s housing market. The segment takes a closer look at a strategy some homebuyers are using to secure lower mortgage rates despite borrowing costs remaining above 6% at times.
Viewer Laura Wasowicz-Pollard wrote in saying: “A friend of ours just bought their first home by assuming a 3% mortgage rate from the sellers. Can you explain how that works? Seems like a great way to bypass the higher interest rates right now.”
To answer the question, Sacramento-area real estate broker Kevin Oto explained how mortgage assumptions work and why they can appeal to buyers trying to improve affordability…