In today’s high-interest housing market, RetroRate is helping buyers and sellers rediscover the value of assumable mortgages—home loans that can be transferred from seller to buyer, often at significantly lower rates than current offerings.
What RetroRate Does RetroRate’s software scans public listings on platforms like Zillow and Realtor.com to identify homes with assumable mortgages. These loans, often backed by agencies like the VA or FHA, can offer monthly savings of over $1,000 compared to new mortgages—especially for homes purchased or refinanced during the 2–3% interest rate era.
Market Impact Across 10 states, RetroRate found that 22% of listings had assumable loans, averaging 4.42% interest. The company also offers a concierge service—charging 1% of the purchase price—to guide both parties through the complex assumption process.
Challenges to Consider· Assumptions are processed by mortgage servicers, not lenders, which can slow timelines.
· Many assumable loans are smaller than current home values, requiring buyers to bridge the “equity gap” with cash or secondary financing.
· Marketing the assumable loan effectively is key—listing agents must highlight this feature to attract interest and potentially boost sale prices.
Why It Matters for Investors and Agents Assumable mortgages can be a strategic tool for affordability and negotiation. While not suitable for every buyer, they offer a compelling option for those with sufficient equity or creative financing strategies. As interest rates remain elevated, tools like RetroRate may become essential in the investor’s toolbox.