What Is An Assumable Mortgage And How Does It Work?

Jul 29, 2024

6-minute read

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Realtor and client hugging in front of home.

Prospective home buyers can finance a new house purchase in a number of ways. With so many mortgage possibilities to choose from, selecting the right loan program can be tricky, though.

One home financing option that some buyers might not be aware of is an assumable mortgage.

Is an assumable mortgage the most appropriate choice for your financial situation and home buying needs?

What Is An Assumable Mortgage?

An assumable mortgage allows the buyer to purchase a home by taking over the seller’s mortgage loan. Some buyers prefer to purchase a home with an assumable mortgage because it may allow them to take advantage of a lower interest rate.

This will be the case if interest rates have risen since the seller purchased the home and the seller signed up for a fixed-rate mortgage.

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