Best Mortgage Options for Today’s Homebuyers

By Linda Welsh

Specialize in representing savvy Buyers and Sellers for residential, second home, vacation properties, lake and hill country properties, new and existing homes, land and lots. Relocation services include area, community and neighborhood expertise and helping the entire family to find the perfect home to meet their needs and wish list.

Do you feel stuck in place because today’s home prices and rates don’t match what you need? Many people are in the same situation. That’s why there’s growing interest in tools that might help buyers and homeowners find some financial breathing room.

Here are some options available now, along with a few new ideas that may give buyers and homeowners a little more breathing room.

Why buyers are asking about assumable mortgages again. Assumable mortgages are getting a lot of attention lately, and for good reason. They allow a buyer to take over the seller’s existing FHA or VA loan at the original interest rate. You don’t have to be a veteran to assume a VA loan.

This can be a big win if the seller has a low rate, but there are limitations. These loans are less common today, but you still need to qualify, and you may need a sizable down payment since you’re only assuming the seller’s loan balance, not the full purchase price.

Pay off your mortgage faster without refinancing. Many homeowners don’t realize they can make a 30-year mortgage behave more like a 15-year one simply by paying extra toward principal only each month.

Even a modest extra amount, properly labeled as “principal only,” can cut a 30-year loan down to about 15 years, or reduce a remaining 20-year term to about 10 years. For people planning to stay in their home long-term, this can be a powerful and flexible strategy.

The potential impact of a 50-year mortgage. The current administration has discussed introducing a 50-year mortgage. A longer term would lower the monthly payment, helping some buyers qualify more easily.

The trade-off? You’d pay more interest over the life of the loan. Still, for buyers who need a lower payment just to get in the door, it could be a meaningful option. If it becomes widely available, we may even see buyer demand surge, which, in turn, could push prices higher.

How portable mortgages could change home buying. One of the newer ideas being talked about is the portable mortgage, a system that would let homeowners take their existing mortgage and its interest rate with them when they move.

Imagine bringing your 4.3% rate to your next home. If you locked in a rate in the 2’s or 3’s, you’d never have to give it up.

Right now, many homeowners are staying put simply because moving means jumping to a much higher rate. A portable mortgage could help free up inventory, make downsizing easier, and get the market moving again. It’s a concept I’ve never seen implemented, but I’d love to see it become available, potentially as early as 2026.

If you have questions about mortgages or today’s rates, my team works with a short, vetted list of excellent lenders we trust. And whether you’re thinking about buying or selling in the coming year, reach out at (512) 657-4033 or visit LindaWelshRealtyGroup.com. We’d be happy to help you explore your options.