$upercharge Your $ales by Mastering Assumable Mortgages

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Good morning, real estate champs! 🏡 With interest rates at sky-high levels, there’s a hidden gem out there that could be your new best friend—assumable mortgages.

They’re like finding buried treasure in today’s competitive market, giving buyers the chance to scoop up lower rates while you close more deals.

With interest rates on the rise, buyers are hungry for any edge they can get—and assumable mortgages could be the secret weapon you need.

Today, we’re breaking down everything you need to know about assumable mortgages, why they matter, and how they can $upercharge your $ales!

Ready to step up your game? Let’s get into it! 👇

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WHAT IS AN ASSUMABLE MORTGAGE?

It’s exactly what it sounds like! An assumable mortgage allows buyers to “assume” the seller’s existing loan—same interest rate, same balance, same terms.

This is golden when rates were locked in at 2.75% or 3.5% a few years ago, compared to today’s 6.75%.

But here's the catch: not every mortgage is assumable. So, understanding which ones are and how the process works is key.

THE BIG SAVINGS: WHY ASSUMABLE MORTGAGES ARE GOLD

It’s all about locking in that sweet, low rate. Let’s do some quick math:

With approximately 20% of U.S. mortgages being assumable—mostly FHA, VA, and USDA loans—there’s a real opportunity to leverage this for your clients.

Assumable mortgages can lock in rates as low as 2.75%–3.5% from a couple of years ago, compared to today’s 6.75%.

Example:

For a $500,000 home with 20% down:

• Standard Mortgage (6.75%): Monthly payment = $2,594

• Assumable Mortgage (2.75%): Monthly payment = $1,633

• Savings: $961/month or over $11,500 annually!

Who wouldn’t want to pocket that kind of cash? 🤑

TYPES OF ASSUMABLE MORTGAGES

Here’s a quick cheat sheet:

• FHA Loans: Assumable if the buyer meets the lender’s qualifications.

• VA Loans: Open to veterans and non-veterans, but veterans need a Substitution of Entitlement to free up their VA loan benefits.

• USDA Loans: Assumable with some extra hoops to jump through.

• Conventional Loans: Typically not assumable, unless you get the lender to waive that pesky due-on-sale clause.

HOW TO FIND ASSUMABLE MORTGAGES

Check MLS listings for FHA, VA, and USDA loans. Some platforms, like AssumeList and Assumable.io, specialize in properties with assumable mortgages.

Yes, you read that right. MLS platforms are catching on! Agents can now list properties with assumable mortgages in many areas.

This feature is becoming more widely available as assumable mortgages grow in popularity, especially with FHA, VA, and USDA loans.

FINDING OUT IF A MORTGAGE IS ASSUMABLE

Before you go diving into assumptions (pun intended!), make sure the mortgage actually qualifies. Here’s how:

1. Review the mortgage documents, especially the Closing Disclosure.

2. Contact the lender for confirmation, get confirmation directly from the source.😉 

Most FHA, VA, and USDA loans are assumable, but conventional loans often have a “due-on-sale” clause. In other words, no assumption unless the lender says otherwise.

THE PROCESS OF ASSUMING A MORTGAGE

Now, let’s walk through the steps:

1. Verify the Loan’s Assumability: Check with the lender or review the mortgage docs.

2. Apply for Assumption: The buyer submits an application with income and credit details, just like any other loan.

3. Lender Approval: The lender checks credit, income, and ability to pay.

4. Assumption Agreement: The mortgage gets legally transferred over.

5. Closing Time: The buyer covers assumption fees (typically $500–$1,000) and any price-to-loan balance difference.

LOWER FEES, FEWER HEADACHES

One more reason to love assumable mortgages? Lower fees and fewer years of payments.

Since it’s not a brand-new loan, you're taking over a mortgage that's already been paid down for years, meaning fewer payments left to make.

Assumption fees typically range from $500 to $1,000—much cheaper than traditional closing costs. Plus, skipping loan origination fees and appraisals? Count us in.

Compare that to the usual closing costs, and you’re looking at some serious savings, both upfront and over time.

A WORD OF CAUTION FOR SELLERS

If your client is selling a home with an assumable mortgage (especially VA loans), make sure they secure a Release of Liability or Substitution of Entitlement.

Otherwise, they might still be responsible for the loan even after the buyer takes it over.

YOUR COMPETITIVE EDGE: SHOW YOUR VALUE

As a real estate agent, helping your clients navigate assumable mortgages can be a game-changer.

In today’s high-interest environment, this is an edge that sets you apart. You'll not only secure more clients, but you’ll also provide them with serious savings—boosting both your reputation and your bottom line.

Use assumable mortgages to $upercharge your $ales and help your clients land the deal of a lifetime.

Educate your buyers on this golden opportunity and start closing more deals today!

TAKE ACTION TODAY

Join our Premier Coaching for free, and get daily coaching sessions, expert scripts, and the strategies you need to tackle prospecting head-on. Sign up at https://premiercoaching.com.

And if you’re ready to take that next big step, consider joining the EXP Realty team. Visit https://whylibertas.com/harris or text Tim directly at 512-758-0206.

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AND THAT'S A WRAP!

Let’s conquer this day,

Tim & Julie Harris
Harris Real Estate Daily

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