Keep in mind that rates are headed to historical lows. First time home buyers: low interest rates can help you with the resale of your home! Home buyers that use an FHA insured loan for their purchase may sell their mortgage along with the property. This is a process called assumption. After approval by FHA on sale of the property, the new buyer will assume all obligations under the mortgage, and the seller will be relieved of all liability to the property. The assumption becomes a great marketing tactic for you during resale — you can offer potential buyers a lower interest rate that they could not obtain anywhere else! The new buyer also avoids the settlement costs on a new mortgage. Win/Win situation as far as I am concerned! : )
If you would like a detailed scenario, here’s an article from the Washington Post Website.
