Mortgage Glossary
Assumable Mortgage
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An assumable mortgage lets a buyer take over the seller's existing loan, inheriting its interest rate, balance, and remaining term.
What Assumable Mortgage means
FHA, VA, and USDA loans are generally assumable with lender approval; conventional loans usually are not. In a high-rate market, assuming a seller's older low-rate loan can save a buyer hundreds per month.
Florida example
If a Florida seller has a 3.25% FHA loan with $280,000 remaining, a qualified buyer can assume it instead of taking a new 6.75% loan. The catch: the buyer must cover the gap between the balance and sale price, often with a second loan or cash.
Related program: Learn more →
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.