Buyers can save thousands by assuming a seller’s low-interest mortgage—here’s how it works.
If you're shopping for a home in today’s high-interest environment, there's a little-known strategy that could dramatically reduce your monthly payment: mortgage loan assumption. This option allows you to take over a seller’s existing mortgage—often at a much lower interest rate than what lenders are offering now.
?? What Is a Mortgage Loan Assumption?
A mortgage assumption means the buyer takes over the seller’s current mortgage, including the remaining balance, interest rate, and repayment terms. Instead of applying for a new loan at today’s rates (often 7% or higher), you “step into” the seller’s loan—potentially locking in a rate as low as 3–4%.
?? Why It Matters in 2025
With interest rates climbing, assuming a low-rate mortgage can save buyers hundreds of thousands over the life of the loan. For example:
Loan Type
Interest Rate
Monthly Payment
Total Interest Paid
Assumed Loan
3.5%
$1,796
$246,624
New Loan
7.0%
$2.661
$558,360
Savings: $311,736 in interest alone.
? Which Loans Are Assumable?
Not all mortgages qualify. Here are the most common types:
Note: Most conventional loans include a “due-on-sale” clause, making them non-assumable.
?? What’s Required?
To assume a mortgage, buyers typically need:
?? How to Find Assumable Homes
??? Final Thoughts
Mortgage assumptions aren’t just a financial loophole—they’re a strategic way to buy more home for less. If you’re an empty nester, first-time buyer, or relocating to the Catawba Valley market, this could be your ticket to affordability and legacy-building.
?? Want to explore assumable homes in your area? Let’s talk.
Sheree Byrd, Realtor® Faith Parker Properties ?? 828-556-5468
info@shereebyrdrealtor.com