What Is a 2.75% Assumable Loan — and How Can You Get One?
Why Everyone’s Talking About Assumable Loans Again
Mortgage rates have climbed high, but not everyone is stuck there.
Some homeowners still carry ultra-low loans from 2020–2021 — and in some cases, those loans can be assumed by a new buyer.
That means you can literally take over the seller’s loan — same balance, same interest rate, same monthly payment.
Example: Large Home Currenly on the market in Frisco TX .
Let’s look at a real-world example.
Original List Price $799,000 - now lowered to: $679,000
Existing Loan: $444,000 @ 2.75 % (Fixed – Mr. Cooper Loan)
Equity Gap: ≈ $235,000 (price minus loan balance)
Bedrooms / Baths: 5 / 4
Square Feet: 3,893
Year Built: 2001
Annual Taxes: ≈ $10,985 (≈ $915 per month)
Estimated Insurance: ≈ $200 per month
Monthly Cost Comparison
Option 1 – Assume Existing Loan (2.75%)
• Principal & Interest: $1,813
• Taxes: $915
• Insurance: $200
➡ Estimated Total: ≈ $2,928 per month
Option 2 – New Loan Today (7%)
• Principal & Interest: $2,950
• Taxes: $915
• Insurance: $200
➡ Estimated Total: ≈ $4,065 per month
💰 That’s a savings of roughly $1,137 per month or $13,600 per year.
How Assumable Loans Work
Confirm Eligibility
Most assumable loans are FHA, VA, or USDA — though some conventional (like this Mr. Cooper loan) allow it.Apply with the Lender
The buyer must still qualify financially. Mr. Cooper reviews income, credit, and debt-to-income ratios.Cover the Seller’s Equity
The buyer pays the difference between the price and loan balance — cash, a second loan, or seller financing.Close and Transfer Ownership
The lender approves the assumption, the title company closes, and the buyer takes over the loan’s terms and rate.
What to Watch Out For
You still have to qualify financially with the lender.
You need enough cash to cover the equity gap.
The process can take 30–60 days.
Always use an agent and title company experienced in assumptions.
Why It’s Worth It
A 2.75 % loan is like finding a financial time machine back to 2020.
Even with a larger cash investment up front, the long-term savings can build equity faster and protect you from rate hikes.
For families in Texas or Minnesota, assumable loans can make higher-priced homes affordable again — especially if you plan to stay for 5–10 years or more.
Bottom Line
If you find a home like 8201 McKenzie Court in Frisco with a 2.75 % assumable loan, you could lock in payments that are half of today’s rates.
It takes a bit more time and cash up front, but the payoff can be massive in the long run.
Ready to Find Your Own Assumable Loan?
Reach out to Sean and Blanca in Minneapolis & Dallas.
We’ll help you locate low-rate assumable homes, work with the lender through the approval process, and structure a deal that makes sense for you.
Sean@SeanandBlanca.com
651-336-7612
@seanandblanca
