Felix, who hailed from the bustling New York and New Jersey metro area, made the move to Atlanta nearly a decade ago. Family was everything to Felix and being near his children meant making the move south. He grew to love the area with one exception. Navigating Atlanta’s notorious traffic congestion made visiting his kids a burden.
His priority was to be nearer to his cherished grandkids while they were still young so he wouldn’t miss out on a single opportunity to create lasting memories with them. The challenge - he was sitting on a coveted 2.75% interest rate with his current mortgage. Giving that up meant he could afford less home in exchange for being closer to the grandkids. Ideally he’d find a place he could afford and keep his current home as a rental property.
Felix was determined to make the move and set out to find a new home, knowing his options may be limited given the current market and record-high mortgage interest rates. He explored potential properties to call home for two months before finding one he liked just a few miles from his grandkids in Bremen, Georgia. This home not only had everything he was looking for, but to his surprise it also came with the option to assume a low-rate mortgage from the seller.
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Too Good to be True?
While touring the home, he learned from the listing agent something that sounded almost too good to be true: assumable mortgages, a type of home loan that allows the buyer to take over the existing mortgage terms from the seller. This seller’s mortgage interest rate was only 3.5% which was unheard of in the current market where conventional rates hovered around 8%, a 23 year high at the time. He read through the materials which explained assumable mortgages and how Roam helps facilitate the assumption process. He was intrigued, and also somewhat skeptical so he decided to contact Roam to learn more.
He recalls, "I thought it was a scam the first time I heard about assumable mortgages.” After talking to Roam's customer advisor, however, he was reassured. “The person I spoke to was very supportive, knowledgeable, and patient when addressing my questions. Assumable mortgages aren't mainstream yet, but by the end of the conversation, I realized that this was legitimate and that everyone should be doing this," said Felix.
Learn More About Assumable Mortgages.
Roam was There Every Step of the Way
Navigating the mortgage assumption process can be confusing and frustrating without the proper help. Roam was there every step of the way, providing invaluable guidance and support, making the entire process smooth and ensuring Felix closed on time.
Specifically, Roam helped Felix navigate and understand the many nuances of the assumable mortgage process. Roam helped make a complex transaction involving multiple parties a straightforward journey, all the way down to ensuring all documents were submitted correctly the first time, everytime. Roam also took the initiative to handle reference letters for Felix saving him time during his busy work schedule. "Roam made it easier for me to understand and follow the process to make sure we executed each step correctly, “said Felix.
One of the biggest challenges with assumable mortgages is that it can be time consuming without someone to continually monitor and move the process forward especially when there are hiccups. For example, the loan officer assigned by the servicer to Felix’s loan assumption changed three times during the process. With each change, Roam was quick to get the new loan officer up to speed and to keep things on track. "My Roam advisor was always in the middle and quick to follow up,” said Felix. He was like the quarterback for the whole thing." he added. “They took a huge burden off of me and made the process seamless for all of the parties in the transaction, in spite of all the back and forth.”
Learn How to Lower Your Monthly Payment With Roam
From Homeowner to Landlord
Felix is a numbers guy. He thrives on analyzing financials and is savvy about money decisions. When it came to buying a house he knew how to size up the economics and understand what he could afford.
He also knew about the benefits of property investing and building an income stream from turning his current home into a rental property. In fact he’d done this twice before and had two rental properties in New Jersey. Through savvy financing and diligent budgeting, Felix had managed to hold on to his prior homes and turn them into rental properties that generated income.
Now he set his sights on adding a third rental property. Felix jumped on the opportunity to refinance when interest rates dropped to historic lows and pulled out some cash that would allow him to make a down payment on his next purchase.
Using Roam, the low-rate assumable mortgage that came with his target home was an added bonus. The home was listed at $410,000, and at 20% down in the current market, the monthly payment would be just over $2800.
By going the assumption route, Felix obtained the 3.5% mortgage currently on the home. His new payment? $2100, or a savings of just over $700 a month. Without Roam, the combined mortgage payments of his properties would have been a stretch for Felix’s budget. This allowed him to keep his prior home and turn it into a third rental property that would allow him to generate even more income. Felix also considered the $700 he saved each month could be extra profit for his growing real estate rental portfolio down the road.
Read More: These First-Time Buyers Saved Big With Roam:
What’s Next for Felix
With a successful track record of multiple rental properties, Felix has ambitions for continuing to expand his real estate portfolio. He plans to set aside some of the monthly savings from his recent purchase towards a down payment for another property down the road, hopefully, one he can also purchase with Roam at a historically low rate. With four properties in his portfolio, two in Jersey and two in Atlanta, he's diversifying his real estate holdings for stability and growth and success in finding great renters. "I have some great tenants because I treat them with respect," Felix explained.
Felix's journey is a great lesson in taking financial control, assessing opportunities, and ultimately building financial security. For Felix, it’s also about building generational wealth for his grandchildren through diligent budgeting and savvy investing in real estate. He's not just securing his financial future—he's setting up a legacy to benefit his family for future generations.
