Assumable Mortgage Calculator: Take Over the Seller's Loan, Cover the Gap With a Second
An assumable mortgage lets you take over the seller's loan at the seller's rate. On a house bought in 2020 or 2021, that rate can be less than half of what a new loan costs today. The catch is the gap: the difference between the price and what the seller still owes, which you cover with cash, a second mortgage, or both. Type in the loan the seller has and this assumable loan calculator shows your payment on both loans, the same house on a new loan at today's rate, what you'd save, and the cash you need to close. VA sellers can check what happens to their entitlement in the second calculator below.
Run your numbers
The home
The loan you'd take over
FHA mortgage insurance usually stays with the loan when you assume it. The seller's statement shows the amount.
Covering the gap
Whatever your cash doesn't cover is financed by the second mortgage. Second-lien rates usually run above first-mortgage rates; get a real quote.
Monthly costs on the house
The comparison
Mortgage News Daily index for October 19, 2026: 7.43% conventional, 7.04% FHA, 7.05% VA. The default follows the loan type; change it to your own quote.
| The gap | |
| Price minus the loan balance | $0 |
| Your cash down | $0 |
| Financed by a second mortgage | $0 |
| Your payment with the assumption | |
| Assumed loan, principal and interest | $0 |
| Second mortgage, principal and interest | $0 |
| Mortgage insurance, taxes, insurance, HOA | $0 |
| Total monthly | $0 |
| The same house on a new loan | |
| New loan | $0 |
| Principal and interest | $0 |
| Taxes, insurance, HOA | $0 |
| Total monthly | $0 |
| What it adds up to | |
| Savings over the first five years | $0 |
| Assumption fees, estimated | $0 |
| Cash needed to close | $0 |
The new-loan side leaves out mortgage insurance, so on a small down payment the real savings run higher than shown. Fees are estimates; the servicer sets the final figure.
See assumable homesText me ASSUMEVA loan assumption calculator: the seller's entitlement
2026 one-unit loan limits from the FHFA. VA uses the county limit only when part of your entitlement is still tied up in a loan.
| Full entitlement in that county (25% of the limit) | $0 |
| Tied up in the assumed loan (25% of the original amount) | $0 |
| Remaining entitlement | $0 |
Buying power is the remaining entitlement times four, the loan size it guarantees at 25 percent with no down payment. A down payment raises it. The math assumes the original loan was over $144,000; your Certificate of Eligibility shows the exact charge.
How an assumable mortgage works
Who can assume what
FHA and VA loans can be assumed at the seller's rate with the servicer's approval. USDA loans can be assumed too, but USDA often resets the rate and terms, so confirm with the servicer before you count on the seller's rate. Most conventional loans are not assumable, because they carry a due-on-sale clause. You qualify with the servicer the way you would for any loan, with credit, income and debts, and you don't need to be a veteran to assume a VA loan.
The gap is the whole game
You take over the balance, not the price. On a house that has gained value since the seller bought it, the difference can be six figures. You cover it with cash, a second mortgage, or a mix. The second usually carries a higher rate, so the blended payment is what you compare against a new loan, which is what the calculator does.
FHA mortgage insurance comes with it
An assumed FHA loan keeps its monthly mortgage insurance. Enter the amount from the seller's statement. HUD raised the cap on what a servicer can charge to process an FHA assumption from $900 to $1,800 in May 2024.
VA has its own rules
VA charges a 0.5% funding fee on an assumption, based on the loan balance, and the servicer charges a processing fee that VA caps at $300, plus a regional allowance in some cases. The bigger issue is the seller's: their entitlement stays tied to the loan until it's paid off, unless the buyer is a veteran who substitutes their own. The second calculator shows what that leaves the seller.
Plan for a slower closing
The seller's servicer, not a lender you shop for, runs the approval, and servicers often take longer than a new-loan closing. Build that time into the contract, and ask the listing agent early whether the servicer has already approved assumptions on other homes.
A worked example
A $650,000 home with an FHA loan the seller took at 3.0%, $400,000 left on it and 25 years to go. The gap is $250,000. Put $100,000 down and finance the other $150,000 with, say, a 30-year second at 8.5%. The assumed loan runs $1,897 a month in principal and interest and the second $1,153, so with $2,500 a year in property tax and $1,800 in insurance the total is about $3,409. The same house with the same $100,000 down on a new FHA loan at 7.04% is about $4,032 a month. That's roughly $624 a month in your pocket. Both sides leave out FHA mortgage insurance: the assumed loan keeps the seller's, and a new FHA loan adds its own.
Finding the homes is the other half. My assumable mortgages guide covers how to find them in Middle Tennessee, and the Spring Hill assumable homes page tracks that market. If you're the seller, the home equity calculator shows what the gap means for you.
Rates, APRs, buydowns and builder incentives on this page are published by the builder or lender named, were read on the date shown, and can change or end without notice. They are not an offer of credit from me or eXp Realty, and I am a licensed Realtor (TREC 369038), not a mortgage lender. Confirm the current terms, APR, eligibility and any lender requirement in writing with the builder or lender before you rely on them.
Common questions about assuming a mortgage in Tennessee
Can a non-veteran assume a VA loan?
Yes. Anyone who qualifies with the servicer can assume a VA loan. The difference is what happens to the seller: if the buyer is not a veteran substituting their own entitlement, the seller's entitlement stays tied to the loan until it's paid off.
What does it cost to assume a VA loan?
VA charges a 0.5% funding fee on the loan balance, and the servicer charges a processing fee that VA caps at $300, plus a regional allowance in some cases. You also pay normal closing costs and cover the gap between the price and the balance.
Does FHA mortgage insurance go away when I assume the loan?
No. The mortgage insurance stays with the loan on the same terms the seller had. The seller's statement shows the monthly amount, and the calculator adds it to your payment.
Is an assumable mortgage worth it?
It is when the seller's rate is far enough below today's that the savings outrun the cost of covering the gap. A small gap and a big rate difference is the sweet spot. A large gap financed with an expensive second can erase most of the benefit, which is why the calculator compares the blended payment with a new loan instead of looking at the seller's rate alone.
What do you need to qualify to assume a mortgage?
The same things a new loan asks for: credit, income, your debt-to-income ratio, and the cash or second-mortgage approval to cover the gap. The servicer sets the standard and underwrites you. For a VA loan you do not need to be a veteran, but a veteran buyer can substitute entitlement and free the seller's.
Can I use a second mortgage to cover the gap?
Often, yes. The servicer has to approve the combined debt, and the second carries its own rate and term, usually higher than a first mortgage. The calculator blends both payments so you can compare them with a new loan.
What happens to the seller's VA entitlement?
It stays committed to the loan until the loan is paid off, unless a veteran buyer substitutes their entitlement and VA approves it. A seller with entitlement tied up can still buy again with what remains; the second calculator estimates how much.
How long does an assumption take?
Longer than a typical new-loan closing, because the seller's servicer runs the approval on its own schedule. Write the timeline into the contract and check early whether the servicer has handled assumptions recently.
How do I find assumable homes in Middle Tennessee?
Most listings don't advertise it. My assumable mortgages guide explains where to look, and I post assumable homes every week. Text me ASSUME at 615-392-1186 and I'll send the current ones.
Rates, APRs, buydowns and builder incentives on this page are published by the builder or lender named, were read on the date shown, and can change or end without notice. They are not an offer of credit from me or eXp Realty, and I am a licensed Realtor (TREC 369038), not a mortgage lender. Confirm the current terms, APR, eligibility and any lender requirement in writing with the builder or lender before you rely on them.
Found a house with a loan worth taking over?
Send me the address and I'll find out what loan is on it, whether the servicer allows the assumption, and what the gap really is. Then we run these numbers against a new loan before you write an offer. Call or text 615-392-1186.