What is Assumable Mortgage?
An assumable mortgage is one a qualified buyer can take over from the seller, keeping the existing interest rate and terms. Many government-backed loans (FHA, VA, USDA) are assumable, while most conventional loans are not. When existing rates are lower than current market rates, assumption can be very valuable.
Example: A seller has a 3% VA loan; an eligible buyer assumes it, keeping the low 3% rate instead of taking a new loan at today’s higher rates.