Understanding San Francisco TICs better
A reader asks:I am trying to understand TIC's better - If I want to buy into a TIC now, and think I may sell in a few years how does it effect the mortgage (not for individual loans), say for example if the rates go up? Does the new buyer buy into the existing mortgage or does it bump up the rate of the existing mortgage?
Our reply:
First of all it depends on the terms of the underlying loan but generally speaking, TIC units get a loan that is assumable. So when you sell to a new person they assume the underlying terms of the existing note. So it does not bump up the rate of the existing loan.
- Janis Stone
posted by SFResidence.com @ 3:33 PM
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