Assumable Mortgages Surge as Homebuyers Seek Low Rates

Assumable Mortgages Are Making a Comeback in a High-Rate Market

The surge in home prices and interest rates has left many prospective homeowners in a conundrum, including Ellen Harper, an Atlanta-based software architect. The current market conditions made her wary until she discovered the possibility of assumable mortgages.

Assumable Mortgages: An Overview

An assumable mortgage is a home loan that allows a new buyer to take over the seller’s existing mortgage, including its low interest rates. Harper’s new home in Fairburn, Georgia, came with a mortgage rate of 2.49%, substantially lower than the current average rate of 7.09% on 30-year-fixed loans. She found her home through Roam, an emerging platform that lists homes with assumable loans.

The Resurgence of Assumable Mortgages

Despite being a common practice in the 1980s, assumable mortgages had fallen out of favor until recently. The rising mortgage rates have reignited interest in this practice, with companies such as and Roam facilitating the discovery and acquisition of such properties.

Challenges and Opportunities

While assumable mortgages offer benefits, they also present certain challenges. Potential buyers often need to make a hefty down payment and find a willing seller. However, companies like Roam are working towards simplifying the process. Roam, backed by notable investors like Founders Fund and DoorDash CEO Tony Xu, offers transaction coordinators who work with mortgage servicers to ensure smooth deals.

Navigating the Assumable Mortgage Market

Roam operates in 18 cities across seven states, offering properties with assumable mortgages under 6% that cover at least half of the purchase price. The company works with real estate agents who are familiar with assumable loans and also offers a guarantee to expedite the assumption process.

Understanding the Financials

While low-rate assumable mortgages seem attractive, potential homeowners need to account for costs such as mortgage insurance premiums and the possibility of needing a second mortgage. Companies like Roam are addressing these issues by partnering with national lenders like Spring EQ to ensure clients can secure second loans.

Assumable Mortgages: The Future of Home Buying?

As mortgage rates continue to rise, assumable mortgages offer a viable alternative. Despite the challenges, the benefits of lower interest rates and manageable monthly payments make them an attractive option. As platforms like continue to democratize access to these mortgages, more homeowners might find themselves saying, like Ryan Carrillo, founder of, “Assumables are a time machine to the low rates of the past.” For many, the numbers simply make sense.

Take Action

If you’re navigating the current high-rate market, consider exploring assumable mortgages. Harness the power of platforms like Roam and to find properties with assumable loans. But remember, always run your numbers, consider all costs, and seek professional advice to ensure a financially sound and beneficial decision.