Want a Lower Mortgage Rate?  Take Someone Else's Loan

Want a Lower Mortgage Rate? Take Someone Else’s Loan

Dave and Melissa Hostetler considered cutting the list price again on their Rockville, Md., home in June. Instead they decided to dangle another goody before prospective buyers: their low-rate mortgage could come with the house.

Mortgage assumption, as the practice is known, is garnering attention for the first time in years. It is typically allowed in government-backed mortgages like the Department of Veterans Affairs program the Hostetlers used when they bought their house in 2019. Offering up an old mortgage can make a house more affordablesaving buyers hundreds of dollars a month compared with market rates north of 5%.

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