Another interest rate increase today & it's all that we'll be talking about, that & how it will impact real estate.
Many Buyers & Sellers have never experienced rates like we currently have but these used to be the norm. What was also the norm were PORTABLE & ASSUMABLE Mortgages. What are those?
Portable mortgages can be moved with the mortgagee to a new property. They are attached to the borrower so that lower interest rate can be applied to a new property. Check with your lender to see if this applies to you, & what additional costs or conditions might apply with a new property.
Assumable mortgages are ones that run with the property & could be assumed by the new owner if they meet the lender's requirements. That would be a selling feature for Buyers who could assume the mortgage for the balance of the term. Again, check with your lender to see if that's a feature of your mortgage and if so, what they would require from that purchaser to approve their assumption of the mortgage.
There are many mortgage products available to Buyers & to offer a lower rate, some mortgages may not include either of these options so very important to check on your specific mortgage & any flexibility it may offer.