Assumable Mortgages: What Homebuyers Need To Know

By Steve Zajdzinski

With over 24 years in Real Estate and experience as a former Director of Sales for the largest private homebuilder in Northern Arizona, Steve has over 2 decades of real estate experience including 15 years in the new home industry.

Are high interest rates making it challenging for you to buy a home? You’re not alone; many buyers feel the pinch as rates hover near 7%. But what if I told you there’s a way to get a mortgage rate under 4% or even under 3%? It’s possible, and it’s called an assumable mortgage. Let me explain how it works and why it could save you thousands.

An assumable mortgage lets you take over the seller’s loan, including their lower interest rate. FHA and VA loans are usually assumable, but conventional loans are not. If the seller has a 3% interest rate loan, you can assume that rate and avoid today’s higher rates. This means lower monthly payments and significant savings over the life of the loan.

Why does this matter so much? Because interest rates directly impact your monthly payment and total loan cost, making assumable mortgages a smart choice. Assuming a lower rate’ll save thousands of dollars over time. Plus, lower payments make it easier to afford your dream home.

Many sellers don’t even realize their loans are assumable. That’s where I come in. I can help you identify homes with these opportunities and guide you through the process. I even have a searchable tool that shows homes with assumable loans in the Phoenix and Prescott areas. This gives you a head start on finding the best deals. 

Assuming a loan isn’t as simple as applying for a new mortgage. You’ll need to qualify for the loan and may need funds to cover the difference between the home’s sale price and the loan balance. Also, depending on the loan servicer, the process can take longer—usually 60 to 90 days.

If you’re tired of high interest rates, an assumable mortgage could be your solution. It’s wise to lower your payments and afford a better home. Reach out to me today, and I’ll help you find a home with an assumable loan and guide you through every step of the process. Call me at 480-725-4555 or email me at steve@soldbystevez.com.