In a rising rate market, sellers can make their homes more appealing while buyers can take advantage of low-interest mortgage loans. If a home is sold with an assumable mortgage, it means the loan can be transferred from the seller to the buyer. The new owner takes over the existing loan, and keeps the same rate and the remaining term of the seller’s mortgage.

For both buyer and seller, this is a win-win situation. Assumable loans can be FHA or VA loans.