In South Florida’s dynamic housing market, every dollar matters—especially with mortgage rates hovering near 6.5%. But one Miami buyer found a way to cut his payments nearly in half by using an assumable mortgage, a little-known option that lets buyers take over the seller’s existing loan and rate.

Finding Savings in Brickell

After moving from California to Miami’s Brickell neighborhood, Paul Turcutto wanted to buy a condo without getting stuck with today’s high interest rates. His solution came in the form of a loft-style unit on the 28th floor—with panoramic city views and a 2.6% mortgage rate instead of the market average of 6.4%.

“That’s a $600 monthly difference—$7,200 in yearly savings,” said his agent, Diego Ramos.

Ramos explained that an assumable mortgage allows a buyer to inherit the seller’s existing rate and terms, which is especially valuable now as affordability challenges mount. These loans are typically available for FHA and VA loans and can make a major impact on monthly budgets.

A Growing Trend Amid High Rates

With prices and rates both high, assumable loans are gaining popularity. “We’re seeing more of them because buyers are desperate for lower payments,” Ramos added. However, many buyers and sellers still don’t realize the option exists.

According to Ronak Singh, founder of Roam, a website that tracks assumable listings in 17 states including Florida, “98% of assumable homes in Miami aren’t advertised as such.” Roam connects buyers with these opportunities, highlights potential savings, and guides them through the complex approval process. The company charges a 1% fee based on the home’s purchase price.

Challenges and Long-Term Value

Experts caution that assumable loans can take longer to close since the original lender must approve the transfer, often extending the process beyond the typical 30-day timeline. Additionally, buyers may need a larger down payment to cover the gap between the seller’s loan balance and the property’s purchase price.

In Turcutto’s case, his $440,000 condo came with a $264,000 assumed loan, requiring about $175,000 upfront—but the long-term savings made the higher entry cost worthwhile.

“Find a good realtor and do your research,” Turcutto advised. “You can’t do this on your own.”

A Win-Win for Sellers Too

Real estate professionals say sellers should advertise assumable mortgages more openly. In today’s market, a low-rate loan can make their property stand out and attract more buyers—especially as average listing times stretch past 90 days in South Florida.