Latest / The Assumable Guy Show
Can I Make Extra Payments on an Assumed Mortgage?
Yes, and Ryan makes a strong case for why extra payments on a 2.5% loan are basically a cheat code. Because so little of a low rate payment goes to interest, almost every extra dollar hits the principal directly. He runs the math on a $400,000 assumed loan at 2.5% where a buyer who throws the monthly savings at the principal instead of spending them pays the house off in 16 years instead of 30 and cuts their total interest from $169,000 down to $86,000. Same house, 14 years earlier, $83,000 less to the bank. He also gives you the one thing to watch when sending extra payments so the servicer…
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