Mortgage Assumption vs New Mortgage Guide for Home Buyer Decision (2026)
Compare mortgage assumption vs new mortgage: assumable loan types, qualification requirements, rate comparison, and buyer decision criteria.
Summary
Mortgage assumption transfers existing loan to buyer. This guide explains assumable types, qualification, and comparison to new financing.
Key Steps
- 1Check loan assumability: FHA, VA loans assumable, most conventional not assumable.
- 2Verify qualification: buyer must meet lender credit and income requirements.
- 3Compare rate benefit: assumption worthwhile if existing rate lower than current rates.
- 4Calculate assumption fee: typically 0.5-1% assumption fee plus processing costs.
- 5Consider equity payment: buyer pays seller difference between price and loan balance.