How Does Academy Bank Make Homebuying More Affordable?

In a higher rate market, finding ways to make homebuying more affordable becomes crucial. At Academy Bank, we recognize the challenges our customers face and offer effective strategies like buydowns and loan assumptions to help bridge the affordability gap.

What is a Rate Buydown?

A buydown allows homebuyers to secure a lower initial interest rate on their mortgage, significantly reducing monthly payments during the early years of homeownership. This option is particularly advantageous for families navigating financial uncertainties or frequent moves.

What is a Loan Assumption?

Loan assumptions enable buyers to take over an existing mortgage from the seller, often at a lower interest rate than current market rates. This can lead to substantial savings over the loan's lifespan, especially beneficial in a rising rate environment.

Here are a few key points to keep in mind about assumable mortgages:

• Loan Types: Not all mortgages are assumable; while VA and FHA loans typically are, conventional loans generally are not.
• Qualification: Potential buyers must still qualify with the lender to assume the mortgage, ensuring they meet the lender's criteria for creditworthiness and financial stability.
• Down Payments: In most cases, a down payment is required to cover the difference between the home's sale price and the remaining loan balance. This amount can be a larger percentage of the sale price than anticipated.

At Academy Bank, we provide tailored financial solutions that meet the diverse needs of our customers. Whether you're purchasing your first home, moving to a new area, or refinancing an existing mortgage, our experienced team is ready to guide you through the process and help you achieve your homeownership goals.

Contact us today to discover how buydowns and loan assumptions can make homeownership more affordable and accessible, especially for families in our community. Our mortgage lenders take pride in serving you and ensuring that your financial needs are met responsibly.

 

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Subject to credit approval.  Each loan product is subject to loan program terms, conditions, qualifications.  Fees apply.