Bestselling author and co-host of "The Ramsey Show," George Kamel went from negative net worth to a millionaire status within a decade by following Ramsey's proven money plan. Kamel is committed to breaking down complex money topics and busting money myths to help people save more while avoiding financial pitfalls. In a recent YouTube video, Kamel raised his concern about the growing buzz in the real estate industry about securing very low mortgage rates, as low as 3%, while US mortgage rates hover near record highs. It may sound impossible, but "Assumption Loans" or assumable mortgages can make it happen.
Kamel explained that assumable mortgages are not scams. When you buy a house, you take over or "assume" the seller's old mortgage rather than going to the bank for a traditional mortgage. The biggest lure of assumable mortgages is the low interest rates. In general, when mortgage rates are high, homeownership becomes expensive. Rates were at their lowest a few years back. Hence, if you decide to assume or take over a low-interest mortgage from a seller, which originated a few years ago, the move could translate to significant savings on interest payments over the long term.
