Assumable Loan Savings Calculator - Compare Mortgage Savings

Calculate savings with VA and FHA assumable loans

Assumable Loan Savings

Savings Calculator

See how much you can save by assuming a low-rate VA or FHA loan compared to getting a new mortgage at today's rates.

Monthly Savings
Lifetime Savings
Interest Comparison

Calculate Your Savings

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$50K $400K $2M
$
$10K $350K $1.8M

Remaining balance on the assumable loan

%

Interest rate on the assumable loan

$

Additional down payment (if any)

%

Current rate for new mortgages (default: 7.50%)

Your Savings Will Appear Here

Enter the loan details above, then click "Calculate" to see how much you can save with an assumable loan.

Example Savings

$1,001/month

$360,360 over 30 years

Understanding Assumable Loan Savings

Lower Interest Rate

Take over existing loans with rates as low as 2.5% to 4% instead of today's 7%+ rates.

Lower Closing Costs

Save $5,000 to $10,000 on closing costs compared to originating a new loan.

Massive Savings

Save $500+/month and hundreds of thousands over the life of the loan.

How Assumable Loans Save You Money

When you assume an existing VA or FHA loan, you take over the seller's mortgage at their current interest rate. If they locked in a rate of 3% back in 2020-2021, you benefit from that low rate instead of today's 7%+ rates.

The savings are dramatic: On a $400,000 loan, the difference between 3.5% and 7.5% is over $1,000 per month and more than $360,000 over 30 years.

What You Save

  • Monthly Payment: $500-$1,500 less per month
  • Interest: $200,000-$400,000 less over 30 years
  • Closing Costs: $5,000-$10,000 in savings
  • No Appraisal Fee: Save $500-$700
  • No Origination Fee: Save 1% of loan amount

Real Example

New Loan @ 7.5%

$2,797/month

$400,000 loan, 30 years

Assumable @ 3.5%

$1,796/month

Same $400,000 loan, 30 years

Your Savings

$1,001/month

$360,360 saved over 30 years!

Frequently Asked Questions

What is an assumable loan?

An assumable loan allows a home buyer to take over the seller's existing mortgage, including their interest rate, remaining balance, and terms. VA and FHA loans are assumable, subject to lender approval.

Do I need to cover the equity gap?

Yes. If the home price exceeds the loan balance, you'll need to cover the difference with a down payment or a second mortgage. Our calculator shows you if a second mortgage is needed and factors it into your savings.

Can civilians assume VA and FHA loans?

FHA loans can be assumed by anyone who qualifies. VA loans can be assumed by veterans, active military, and qualifying civilians (though non-veterans assuming VA loans may affect the seller's VA entitlement).

How long does the loan assumption process take?

The assumption process typically takes 45-90 days, similar to a traditional mortgage closing. You'll still need to qualify with the lender and meet credit and income requirements.

Are the savings guaranteed?

This calculator provides estimates based on the information you provide. Actual savings depend on the specific loan terms, closing costs, and whether you need a second mortgage. Always consult with a qualified lender for exact figures.