Free tool · for buyers
The assumable-loan advantage
Some sellers have a 3% loan you can legally take over. You keep their low rate on the balance and finance only the gap at today's rate, so your blended payment can land well below a normal mortgage. See the number for yourself.
Assumable loans are FHA, VA, and USDA only. You take over that low-rate balance, then cover the seller's equity above it with your cash plus a second loan at today's rate.
Your blended payment
$2,340/mo
Financing the whole thing at today's rate: $2,964/mo
You'd save $624/mo · $7,484/yr
- Assumed loan payment
- $1,352/mo
- Gap loan payment
- $988/mo
- Equity gap to cover
- $200,000
- Gap you'd finance
- $150,000
- Effective blended rate
- 4.30%
Real talk: assumable deals are rarer and slower to close, and the big variable is the equity gap. Finding one is where I come in. Education only, not a loan offer; a licensed lender confirms eligibility and terms.
The catch: you have to find one
Only FHA, VA, and USDA loans are assumable, they aren't advertised as such, and the lender has to approve the assumption. That's the work: spotting which listings likely have an assumable low-rate loan and confirming it before you write the offer. Tell me your price range and I'll hunt.
Questions first? Email corysalisbury@kw.com or call or text (801) 245-0511. Education only, not a loan offer; a licensed lender confirms eligibility and terms.