Assumable Loan Calculator — VA/FHA Loan Assumption Analysis
Compare assuming an existing VA or FHA loan at the seller's locked-in rate vs. getting new financing at today's rates. See the real monthly savings, gap financing needs, and total interest savings.
How Loan Assumptions Work
When you assume a mortgage, you take over the seller's existing loan at their original interest rate and remaining term. If the seller locked in a 2.75% rate in 2021 and today's rates are 6.875%, assuming their loan can save hundreds per month. The catch: you must bridge the equity gap between the purchase price and the remaining loan balance with cash or secondary financing.
VA and FHA loans are assumable by law. Conventional loans typically are not (due to due-on-sale clauses). Assumption processing takes 45–120 days through the servicer.
VA Entitlement Considerations
If the seller's VA entitlement isn't restored at closing, it remains tied to the property. Buyers can assume using their own VA entitlement (substitution of entitlement) or assume as a non-veteran. The seller's entitlement stays encumbered until the loan is paid off or refinanced.
Estimates are for education only. They are not a loan offer or a commitment to lend. Rates are examples, not quotes. Verify any scenario with a licensed loan officer. Jay Miller, Sales Manager and Certified Mortgage Advisor, NMLS #657301. CMG Home Loans Branch NMLS #2475890, 500 Ala Moana Blvd, Suite 5-325, Honolulu, HI 96813. CMG Mortgage, Inc. NMLS #1820. Equal Housing Opportunity.