Dave and Melissa Hostetler considered cutting the list price again on their Rockville, Md., home in June. Instead they decided to dangle another goody before prospective buyers: their low-rate mortgage could come with the house.
Mortgage assumption, as the practice is known, is garnering attention for the first time in years. It is typically allowed in government-backed mortgages like the Department of Veterans Affairs program the Hostetlers used when they bought their house in 2019. Offering up an old mortgage can make a house more affordable, saving buyers hundreds of dollars a month compared with market rates north of 5%.