Should I assume my mother's mortgage or buy her house?

I am 29 years old and live in a home where I don't have to pay rent or utilities. I make roughly $60,000 a year and the only debt I have is $12,000 in student loans. My credit score is 780. I am wondering if I should assume a mortgage from a property my mother owns. She has been paying on the property for 15 years with a 30-year loan at 6.25% interest. The other option is to buy the house and lock in a lower interest, or to assume the mortgage and then refinance.



Debt, Real Estate
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November 2017

Whatever you do, it would be a good idea to take a look at refinancing because 30 mortgage rates today are a little over 4% and 15-year mortgage rates are even lower than that.  Probably the easiest way would be if she sold you the home and you took out a new mortgage.  If you talk to a mortgage person then they could help you take a look at what the payment would be if you were to buy the house from your mother.  Some areas even have great first time home buyers incentives that you might be able to take advantage of if you are a first-time homebuyer, although many of the incentives have been going away as the housing market continues to strengthen. 

November 2017