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
If you’re selling an investment property, the IRS offers a little-known gift: the 1031 Exchange. It’s not flashy, but it’s powerful—allowing you to defer capital gains taxes when you reinvest the proceeds into another “like-kind” property. Translation? You keep more of your money working for you.
Here’s how it works: instead of cashing out and paying taxes on your profit, you roll that equity into another investment property. The key is timing and structure. You’ll need a qualified intermediary to hold the funds, and you must identify your next property within 45 days and close within 180. Miss those deadlines, and the tax bill lands in your lap.
Why bother? Because deferring taxes means more buying power. Let’s say you sell a rental for $500K with $200K in gains. A traditional sale might cost you $40K+ in taxes. With a 1031 Exchange, that $40K stays in play—fueling your next purchase, whether it’s a bigger building, a better location, or a property with stronger cash flow.
It’s not just for big investors. Even mom-and-pop landlords or vacation rental owners can use it to upgrade, diversify, or reposition their portfolio. Just remember: this strategy is for investment properties, not your personal residence.
Bottom line? The 1031 Exchange is a savvy tool for sellers who want to grow wealth, not just cash out. Talk to your tax advisor early, plan ahead, and make every dollar count.