How Are Assumable Mortgage Rates Determined?

When you are looking for assumable mortgage homes, there’s one critical detail you just can’t miss: the interest rate associated with the loan. As a buyer, you may wonder what this interest rate data is based on. Here’s an in-depth explanation of how these rates are determined and why it matters for your home search.

Where Do Assumable Mortgage Rates on Listings Come From?

The assumable mortgage rates displayed on property listings are derived from our proprietary data engine. This engine ingests millions of public records, raw mortgage data, and first-party information to provide the most accurate assumable mortgage information for each listing on our platform.

Key Features of Our Assumable Mortgage Data

• Accurate: We gather data from hundreds of sources—not the MLS like 99.9% of other real estate platforms. By decoupling our platform from the MLS, we streamline costs and ensure greater data accuracy, avoiding the disparate, disjointed world of hundreds of MLS systems nationwide.
• Comprehensive: Our dataset is built on real public data, first-party mortgage-level data, and cross-referenced listing data to ensure reliability and completeness.
• Weekly Updated: Our data is updated weekly, and existing listings are refreshed nightly. While it’s not "real-time" like platforms relying on routine MLS API pulls, it’s frequent enough to ensure you always get an up-to-date experience.

How Do We Estimate Current Assumable Mortgage Rates?

Estimating the current mortgage rates on our platform involves a thorough and transparent process. Platforms displaying assumable mortgage rates, including Assumable, use the following approach:

1. Historical Matching

The system checks the estimated origination date of the existing mortgage (for example, when the seller originally purchased the home).

2. Rate Reference

Next, it references the Federal Reserve’s published rate from that specific week or month to estimate what the likely original mortgage rate was.

3. Loan Type Adjustments

Adjustments are made based on the loan type—FHA, VA, USDA, etc.—since these categories can sometimes have slightly different average rates compared to traditional mortgages.

4. Transparency for Buyers and Sellers

This methodology provides buyers and sellers with essential clarity. Everyone understands what interest rate can be assumed and how it compares to today’s prevailing rates.

Why Accurate Assumable Mortgage Rate Estimates Matter

Assumable mortgage rate estimates give buyers a realistic expectation of the rate and payment they could inherit by assuming the loan. This transparency is vital for making informed decisions in today’s ever-changing real estate market.

Want to Learn More?

If you want to learn more about assumable mortgages and accurate rate data, we at Assumable are here to help you. Check out our app now.