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By Arizona Home Group

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A lot of people have been holding off on buying or selling a home because of today’s high interest rates. There is a solution that could get you moving. If you’re a seller with a VA, FHA, or USDA loan, your loan could be assumable.

A mortgage assumption allows a buyer to take over your existing mortgage, including the interest rate, remaining balance, and loan terms. This is an advantage in today’s market, where interest rates are around 7%. Sellers can advertise the interest rate of their home on the MLS, which is a good way to attract buyers and speed up the selling process.

This is a great option for sellers because they can get their equity and be cleared of any further responsibility. For buyers, assuming the loans means lower interest rates, which gives them lower closing costs and more purchasing power to afford a more expensive house than they could, considering the current interest rates.

“Mortgage assumptions present an opportunity to make homes more affordable.”

If mortgage assumptions can benefit both buyers and sellers, why isn’t it more popular? There are a lot of factors to consider. First, the process can be complex and usually takes a bit longer than a traditional sale, about 45 days or more. Buyers also need to pay a larger down payment to cover the seller’s equity in the home. For homes with 20% or less equity, mortgage assumptions can be a viable option for both parties. Nevertheless, it all depends on the buyer, whether they have the means to pay a higher down payment or look for a home seller with 20% or less equity to fit their budget.

With high interest rates and high sales prices, mortgage assumptions present an opportunity to make homes more affordable. We’ve partnered with a company that specializes in handling this process, making it less stressful for both buyers and sellers.

Right now, we have a listing on the market with an assumable loan at a 4.25% interest rate, which is almost half of today’s rates. This home has about 18% equity, the buyer wouldn’t need more than a 20% down payment. In this case, the buyer can save a lot on their monthly payments.


If you are interested in learning more about mortgage assumptions, I encourage you to reach out. I’ll be happy to answer your questions and explore if this is the right option for you. You can call me at (602) 571-3730 or send me an email, and let’s find a solution that works for you.

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