The Indicator from Planet Money Want a 2.5% mortgage? Buy it.
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Mar 5, 2026 They explain how buyers can take over someone else’s low-rate mortgage and why that option is rare. They walk through the slow paperwork, credit checks, and the big cash gap buyers face. They discuss how millions of homes might have assumable loans and why policy changes could make more loans transferable. They debate tradeoffs between liquidity and affordability.
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Assumable Mortgages Let You Keep Old Low Rates
- You can effectively 'time travel' to 2021 mortgage rates by assuming someone else's low-rate mortgage.
- Assumable mortgages let a buyer take over the seller's existing rate, giving access to rates like 2.5% in 2026.
Brendan's Real Example Of Assuming A 2.5% Mortgage
- Brendan Burroughs spotted a Florida listing advertising 'buy the home get a 2.5% mortgage rate' and pursued assuming it.
- He navigated slow lender responses, waited months, and used investment gains to cover a large down payment to complete the assumption.
VA And FHA Loans Create A Pool Of Assumable Low Rates
- Many government-backed loans (VA and FHA) are assumable, which creates a stock of cheap mortgages buyers could target.
- Assume List estimates about 6 million homes have assumable mortgages under 5%, roughly 7% of U.S. mortgages.