OHA Market Update Series - May 8, 2025
National: An assumable mortgage lets a buyer take over the seller’s low-rate loan, offering rare savings in today’s high-rate market — making it a smart advantage for both buyers and sellers. Let me know if you want to explore whether this option could work for you!
Local: The Texas Senate just passed a bill to nearly double the school tax homestead exemption for seniors and homeowners with disabilities, saving them an estimated $950 per year. If approved by voters in November, this could provide major financial relief and help more Texans age in place.
Intrigued? Keep reading.
(4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
Understanding Mortgage Assumptions: What Buyers & Sellers Should Know
Buying or selling a home is already a big deal — and with today’s high interest rates, it can feel even more overwhelming. But there’s a tool many people overlook that can actually save thousands of dollars: the assumable mortgage.
Here’s the gist: when a mortgage is “assumable,” it means the buyer can take over the seller’s existing loan, keeping the balance, interest rate, and terms. So, if the seller locked in a low 3% rate and today’s market is sitting at 7%, the buyer gets to hold on to that cheaper rate — which can add up to huge long-term savings.
Not all loans qualify, though. FHA, VA, and USDA loans are usually the ones that can be assumed, but they come with credit and income checks for the buyer. For VA loans, military sellers often prefer military buyers so they can keep their VA loan benefit.
For buyers, the upside is clear: lower interest rates, fewer fees, and often a simpler, faster closing process. But there’s a catch: you may need to cover the difference between what’s owed on the loan and the home’s sale price — sometimes with a second mortgage or cash.
For sellers, offering an assumable loan can make your home extra attractive, especially in this high-rate market. But you need to be careful — if the buyer defaults and you weren’t officially released from the loan, you could still be on the hook.
Bottom line: mortgage assumptions can be a win-win, but they’re not right for everyone. If you’re thinking about it, let’s connect so we can break down the numbers and make sure it works in your favor — whether you’re buying or selling.
OHA’s HOT TAKE:
An assumable mortgage gives buyers a rare opportunity to take over a seller’s low interest rate — potentially saving hundreds per month compared to today’s high rates. For sellers, it’s a powerful way to attract buyers and stand out in the market.
👉 Curious if you can take advantage of an assumable mortgage or use it to attract more buyers? Let’s connect and explore your options — We’re here to help you make the most of this rare opportunity!
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Texas Senate Passes Major Property Tax Exemption Increase for Seniors & Disabled Homeowners (2025 Update)
The Texas Senate just passed Senate Bill 23, which could nearly double the homestead exemption for homeowners over 65 or those with a disability — jumping from $110,000 to $200,000. That’s a huge shift with real impact on annual property tax bills, especially when you consider rising housing costs across Austin and the state.
Here’s what you should know:
✅ What’s changing?
The exemption on school district taxes would increase to $200,000 for eligible homeowners.
Current exemption: $110,000 → New proposed exemption: $200,000.
The average annual tax savings is estimated at $950 per household.
✅ Who does this help?
Homeowners aged 65+ and those with qualifying disabilities.
Over 2 million Texans could benefit from these savings, giving them a better chance to age in place.
✅ How does it work?
The state would use surplus funds to cover the difference, so school districts don’t lose revenue.
This applies only to the school district portion of your property taxes (which typically make up about half of your total bill).
✅ What’s next?
The bill still needs approval from the Texas House.
If passed, it will go on the November ballot for voters to decide.
If approved, the savings would apply retroactively to 2025 property tax bills.
✅ Why does this matter?
For many seniors, rising property taxes are one of the biggest threats to staying in their homes long-term.
This exemption boost could offer much-needed relief and financial breathing room.
If you or someone you care about falls into this group, this is a rare opportunity to lock in significant annual savings.
OHA’s HOT TAKE:
Rising property taxes are one of the biggest pressures on homeowners right now, especially seniors and people with disabilities who are often on fixed incomes. Even if they’ve paid off their mortgage, the cost of holding onto their home — just through taxes — keeps climbing.
Here’s why this change matters:
✅ Helps seniors stay in their homes longer
Many older homeowners want to age in place, but growing tax bills make that hard. This exemption boost can provide real financial relief, letting them stay in the communities they’ve invested in for decades.
✅ Targets a group that often gets overlooked
While lots of tax policies focus on businesses or broad homeowner relief, this one is designed specifically to help people over 65 or with disabilities — people who often need the help most.
✅ Balances relief without hurting schools
A big concern with property tax cuts is that local schools will lose funding. This plan uses state surplus funds to cover the gap, so districts don’t miss out on needed resources.
✅ Puts meaningful dollars back in homeowners’ pockets
For many, $950 a year may not sound huge — but for someone living on Social Security or a small pension, it can make the difference between paying for home repairs, medications, or staying afloat.
Bottom line: this is a chance to make homeownership more secure and sustainable for the people who need it most.
If you or someone you know is over 65 or has a disability, now’s the time to pay attention.
This proposed exemption increase could bring real savings — but it still needs approval from both the Texas House and voters this November.
✅ Stay informed — I’m happy to walk you through how this could affect your property tax bill.
✅ Check your eligibility — Let’s make sure you’re set up to benefit if this passes.
✅ Spread the word — Share this with neighbors, parents, grandparents, or friends who might qualify.
Follow us on Instagram to stay up to date on these changes as they arise in the Austin area! 🏡✨
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga and pilates, and has been enjoying gardening at her new home in East Austin🎶✨
