Assumptions Are an Alternative

Assumptions Are an Alternative

  • SHANNON FOSTER-BOLINE
  • 04/10/23
 
In the late 80s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.
 
Based on projections by Fannie Mae, Freddie Mac, the MBA, and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates of assumable FHA and VA mortgages in the recent past, it becomes more advantageous to assume the existing mortgages.
 
FHA and VA loans originated with lower than current interest rates have great advantages for buyers and sellers.
 
  1. Interest rate won’t change for the qualified buyer
  2. Lower interest rate means lower payments
  3. Lower closing costs than originating a new mortgage
  4. Easier to qualify for an assumption than a new loan
  5. Lower interest rate loans amortize faster than higher ones
  6. Equity grows faster because loan is further along the amortization schedule
  7. Assumable mortgage could make the home more marketable
An Assumption Comparison can help determine the savings and financial benefits of an assumable mortgage with a lower rate.
SHANNON FOSTER-BOLINE

SHANNON FOSTER-BOLINE

About The Author

About Shannon Foster-Boline

Buying or selling a home is one of the biggest financial decisions most people make — and it deserves thoughtful guidance, not pressure.

I work with Knoxville buyers, sellers, and relocation clients who value strategy, clear communication, and a calm, informed approach. My role isn’t just to open doors or negotiate contracts — it’s to help clients understand their options, anticipate challenges, and move forward with confidence.

With over 1,100 homes sold and more than $270 million in lifetime sales, I bring deep market knowledge and real-world experience to every transaction. I’ve worked with first-time buyers, seasoned homeowners, relocation clients, and luxury sellers — and I tailor my approach to each client’s goals, timeline, and comfort level.

My approach

Clients often describe working with me as steady, thoughtful, and reassuring.

I believe:

  • Strategy matters more than urgency

  • Local market knowledge matters more than national headlines

  • Clear communication reduces stress and leads to better decisions

  • Preparation creates leverage — whether you’re buying or selling

I’m especially experienced in:

  • Relocation and move-up buyers

  • Coordinating buy/sell timelines

  • New construction and modern homes

  • Historic neighborhoods and established communities

  • Navigating complex negotiations calmly and effectively

Experience & leadership

In addition to my work with clients, I’ve been deeply involved in real estate leadership and education throughout East Tennessee. I’ve served in multiple leadership roles within the East Tennessee Realtors and Tennessee Realtors Associations, including President of East Tennessee Realtors.

I hold several advanced designations, including:

  • Certified Residential Specialist (CRS®)

  • Graduate Realtor Institute (GRI®)

  • Accredited Buyer’s Representative (ABR®)

  • Real Estate Negotiation Expert (RENE®)

  • Senior Real Estate Specialist (SRES®)

These credentials reflect my commitment to education, ethics, and professional excellence — but my focus always remains on what matters most to my clients.

Outside of real estate

Outside of work, I’m a mom, a partner, a gardener, and someone who deeply values community and connection.

I love travel, historic architecture, and exploring neighborhoods — both locally and abroad. My family and I split time between Knoxville life and visiting loved ones around the world, experiences that shape how I connect with clients navigating big transitions of their own.

If you’re considering a move

Whether you’re buying, selling, or simply thinking ahead, I believe good decisions start with good information.

If you’d like thoughtful guidance, honest insight, and a calm partner in the process, I’d be honored to help.

Work With Us

We understand the elements of the individual needs and the unique process of each transaction. At the end of the day, we want you to walk away feeling that you have received an amazing experience with our team and that you have been able to realize your dream of selling or buying a home!

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