After 14 years of living in Rhode Island, Alvaro traveled south to Orlando to visit his sister, and he immediately fell in love with the area. The allure of this vibrant Florida city, one of the state's most populous metropolitan areas, eventually drew Alvaro and almost his entire family. Over the next few years, his sister, mother, brother, and in-laws relocated to the area. It was a familial migration that signified more than just a location change; it symbolized a shared investment in a new chapter for Alvaro's extended family.
As a savvy finance professional specializing in wealth management and loan products, Alvaro seized the opportunity to purchase a home in Orlando in 2020 when rates were at historic lows. It was a great decision. Just two years later, his home value soared during a boom in Orlando real estate. Once again, Alvaro had perfect timing when he jumped at the opportunity to sell his home for a significant profit in June of 2022. After selling the home, he planned to rent for a while, waiting for home prices to come down before buying a new home.
By the summer of 2023, Alvaro began exploring home ownership again, focusing on new construction homes because builders offered incentives to offset the sharp increase in mortgage interest rates. Even with incentives, however, prices were sky-high. Alvaro crunched the numbers and determined that the monthly payments on a new home didn't make sense.
Alvaro's home-buying journey took an unexpected turn when he stumbled upon a news article about Roam in Yahoo Finance. He was intrigued by the concept of assumable mortgages, a practice that Alvaro had heard of some clients doing as part of a real estate transaction between family members. However, he had never heard of assumptions by a third party, so he delved into his own research to find out more.
After speaking with a Roam Advisor and reviewing available listings, Alvaro saw his next opportunity. The prospect of buying a home with a low-rate mortgage through Roam in this high-rate environment seemed like a potential goldmine. He was shocked when Roam immediately helped him identify an ideal home in a prime Orlando neighborhood near his family with an incredibly low 2.75% mortgage interest rate. Alvaro quickly got his realtor involved and went to see the property.
Learn More About Assumable Mortgages
Alvaro was ready to make an offer and grateful to have Roam on board to manage the assumption process, something he and his agent had never done before. Despite initial hesitance from the seller's side, the Roam Advisor's guidance and expertise eased their concerns. The transaction unfolded seamlessly, with Roam working on behalf of all parties to ensure every piece of documentation and every form was managed efficiently with the lender. "I was in contact with my Roam Advisor every day toward the end, communication was excellent, allowing us to close in just 40 days", said Alvaro.
With a purchase price of $425,000, Alvaro was able to come to the table with $142,000 down thanks to a combination of savings and his profits from the appreciation of his prior home. Monthly mortgage payments were $1,181, a savings of nearly $850 per month compared to financing the same amount with a traditional mortgage at the prevailing 7.5% rate. Alvaro's low-rate assumable mortgage amounted to over $10,000 per year in savings.
These First-Time Buyers Saved Big With Roam
Reflecting on the experience, Alvaro emphasized the significance of Roam's support and the peace of mind that came with having a dedicated guide through this uncharted territory. "Roam's 1% fee was worth it because it gave me confidence that the transaction would go smoothly. If I had questions or anything came up, I had someone I could go to for help," said Alvaro.
Looking ahead, Alvaro saw the potential for Roam to revolutionize the real estate landscape. The lack of awareness among buyers, sellers, and agents about assumable mortgages hinted at untapped potential. "A lot of buyers out there are on the sidelines. I work in finance, so I understand it's a difficult environment right now," said Alvaro. "If more buyers knew about this, they might be able to buy. It's the only way to buy a property in the environment that we're in right now."