Skip To Content

Assuming a Mortgage: What To Know


Assumable mortgages are a great tool to avoid today’s high interest rates.

Have you heard about assumable mortgages? Today, I spoke with J.C. Diaz of American Pacific Mortgage, and he broke down what they are and what they could mean for you.

Assumable mortgages have been coming up in discussion recently, primarily due to the high interest rate environment we find ourselves in. This is a situation where you can take advantage of the seller’s lower interest rate. This is a great option to keep on the table since with interest rates spiking after their historic lows. 

All that assumable mortgages truly require is that the buyer qualifies to take over the terms of the mortgage from the seller. You do have to go through the same agency as the seller. For instance, if the mortgage is an FHA or VA loan, you must go through them.

It’s important to note that all FHA and VA loans are assumable. That means that you could potentially qualify to take over these loans, going from a 7% interest rate on a new mortgage today all the way down to what could be a 3% loan or less.

In terms of the remaining equity in the house, after the mortgage has been assumed, there are many options available for dealing with that. A second mortgage is one such option. 

So if you have any questions about assumable mortgages, feel free to call or email me. I would love to help you out with finding the right option for you.

Trackback from your site.

Leave a Reply



Shauna Smith has set a new standard in the real estate industry. Shauna marketed our property, using a professional photographer at no cost to us which showed our home in its best light. Shauna gave us feedback following each viewing and we had a signed offer within 48 hours. There had been a couple of issues with an overly aggressive buyers realtor, but Shauna buffered us from any unnecessary stress and ultimately a mutually beneficial outcome was achieved. We didn’t need to lift a finger and a…