An Assumable Loan Can Save You Lots of Money

Loan assumptions can help buyers save hundreds of dollars each month.

What if I told you that you could buy a home in today’s market and potentially get an interest rate under 4%? This can be done with assumable loans, and I recently talked with David Ratti at Envoy Mortgage to learn all about them.

An assumable loan is when a buyer takes over the existing mortgage from the seller. As we know, a lot of people have either purchased or refinanced a home in the last two years at extremely low interest rates, so this can be a great opportunity.

“An assumable loan can be a great tool for both buyers and sellers.”

First, know that the buyer needs to qualify as if they were getting a regular mortgage. Then the seller is released of liability and they’re off the hook. Also, not all loans are assumable, although many are. Existing FHA, VA, and USDA loans are fully assumable, as well as some conventional loans.

This means that if a seller has any of those assumable loans with a 2% interest rate, for example, the buyer could have that 2% rate. This benefits the buyer by saving them money, and it benefits the seller by giving them a big competitive advantage. We haven’t seen these in a while because the interest rates have been so low, but now that they have crept up, this can be a great tool.

If you have any specific questions about assumable loans, you’re welcome to reach out to David by calling (410) 707-5825 or emailing You can also always reach out to me and my team about anything related to real estate. We’re happy to help, so call or email us anytime!

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