If you’ve been paying attention at all to duplex mortgage interest rates, you know that they are historically low.
We’ve all seen and heard the ads for rates well below 5 percent interest for so long now it seems preposterous to think there ever could be such a thing as double digit, let alone 18, 19 or even 20 percent interest.
And yet, it’s happened.
If you’re considering buying a duplex, you might think, “Big deal, I’ll already have a low interest rate”, right?
But what if you want to sell?
After all, the higher the interest rate, the less someone can afford to pay for a duplex.
Well, if you happen to have financed your duplex using an FHA loan, you might actually find yourself in a good position. All FHA loans are assumable.
In other words, even though the going interest rate might be 18 percent, you could allow your duplex buyer to assume yours at the interest rate you’re at now.
Of course, there are some hurdles the buyer will have to jump first, starting with being able to qualify for a loan.
And, if you have the good fortune of selling a duplex for more than you paid for it, the buyer will have to have a big enough down payment to cover the difference between what you owe on the property and the purchase price.
Nonetheless, if ten years from now interest rates are at 18 percent, an FHA loan might make all the difference in selling your duplex!