Assumable Loan + Second Mortgage Calculator
See how an FHA or VA assumption works when a second mortgage covers part of the equity gap, and compare it with a new loan at today's rates. Start with the example numbers below and replace them with your own.
The home
The price and the loan you'd take over.
The existing loan
The loan you'd assume keeps its rate.
0.85% for most 2015–March 2023 FHA loans. Not charged on VA.
Know the original loan? Fill these in and the balance, years remaining and payment are calculated for you.
Listed on the recorded deed of trust
Usually about two months after closing
Second mortgage
Covers part of the gap between the loan balance and the price.
Using the maximum allowed ($68,050)
Taxes, insurance and costs
Yearly premium, as % of price or a dollar quote
Per month
Of price. 3.5–4% is a typical estimate.
Compare with new loans
Estimated monthly payment
$2,767
With the assumed FHA loan and a second mortgage
Assumed loan
$254,000
Second mortgage
$68,050
Down payment
$16,950
Monthly payment
Based on both balances. Each loan keeps its own rate.
Estimated cash to close
Compared with a new loan
| Assumption | New VA | |
|---|---|---|
| Interest rate | 4.35% avg. | 7% |
| Monthly payment | $2,767 | $3,137 |
| Cash to close | $28,815 | $11,865 |
| Total interest | $234,094 | $483,103 |
Monthly difference: $370 less with the assumption. Interest difference: $249,010 over the life of the loans, paying only the minimum.
The assumption costs $16,950 more upfront and saves $370 a month, a breakeven of about 3.8 years on payment alone.
What is a loan assumption?
Secret to Low Mortgage Rates, What is a loan assumption?
How to get a 3% rate
How to Get a 3% Rate, with Amber & Scotty Gifford.
Get Your Assumable Loan Report
A PDF with your payment, cash to close and new-loan comparison, to save, print or share with your agent and lender.
Want help with your numbers?
These estimates are a great starting point. If you'd like, we can look at your actual income, debts, credit and loan options and help you understand what you may qualify for.
Call or Text Scotty: 979-571-9067Scotty Gifford, Licensed Mortgage Loan Originator, NMLS# 2357310. Gifford Home Loans is a marketing brand used for informational and promotional purposes only and is not a separate mortgage lender or financial institution. Mortgage loans are originated and funded through Everett Financial, Inc. dba Supreme Lending, NMLS# 2129. Equal Housing Opportunity Lender.
Looking for an assumable home to buy?
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