Life is pushing you toward a move, but your sub-5% FHA or VA loan makes the decision feel more complicated. It's one of the most common questions in today's market: should you sell your house if you have a low mortgage rate? Or is it a mistake?
That’s assuming your low rate is something you will leave behind. It doesn’t have to be. Mortgage assumptions change the math in ways most sellers don’t account for.
The numbers are hard to argue with. Take a $400,000 loan at 3% vs 7%:
| 3% Mortgage | 7% Mortgage | |
|---|---|---|
| Monthly Payment | $1,686 | $2,661 |
| Additional interest per month | – | $1000 |
| Additional interest per year | – | $12,000 |
| Additional interest per 5 years | – | $60,000 |
That’s roughly $351,000 in additional interest over a 30-year term.
Waiting is sound: your equity builds and your monthly payments remain affordable. That’s why homeowners stay in houses they’ve outgrown and pass on career opportunities in new cities: because traditionally, selling meant losing their low rate.
There are two things most sellers with low-rate mortgages don't realize:
FHA and VA loans are assumable. That means a buyer can take over your existing loan, including the interest rate, balance, and terms. In a market with rates above 6%, an assumable 2.75% mortgage is valuable. According to Roam data, sellers who market their assumable rate as a premium feature of their home get 30% more buyer inquiries and sell for over 5% more.
See our full guide on how to sell your home with an assumable loan.
The mortgage rate lock-in effect is reducing housing inventory.
Millions of sellers are sitting on the sidelines because they don’t want to give up their low-rate mortgage. This phenomenon, known as the mortgage rate lock-in effect, has kept many potential sellers from listing their homes. Housing economists widely cite the lock-in effect as a major reason inventory remains historically low.
That means fewer homes on the market and less competition for you. In a market starved for inventory, a low-rate assumable mortgage becomes an advantage other sellers can't offer.
You can buy your next home with a low rate too.
Assumable mortgages exist on the buying side as well. Sellers can buy their next home with a low-rate assumable loan. With Roam, you can find homes with assumable mortgages well below today's market rate. The lock-in effect disappears when the door swings both ways.
Waiting for rate cuts isn't a safe bet.
When rates dip, more buyers enter the market. But falling rates also create hesitation. Buyers try to wait for rates to drop further, stalling demand.
Sellers with low-rate assumable mortgages sidestep both issues. Even a strong rate cut cycle will bring the market nowhere near your 3%. And your low rate doesn’t fluctuate. Buyers entering the market quickly realize the payment you're offering doesn't exist anywhere else.
If your home is working for you and nothing is pushing you to sell, staying can be a legitimate choice. But if something has changed, or you've spent months telling yourself you're stuck, you're not as locked in as you think. Your low rate doesn't have to keep you somewhere you don't want to be. Sell it as an advantage. Buy your next home with one too.
Want to know the premium your low-rate loan is worth? See the value of your assumable mortgage with Roam.
Can I sell my home if I have a low mortgage rate? Yes. In today's market, your rate can be a significant selling advantage if your loan is assumable.
What is an assumable mortgage? An assumable mortgage lets a buyer take over the seller's existing loan, including the original interest rate, remaining balance, and repayment terms. FHA and VA loans are assumable.
Does selling mean I lose my low mortgage rate? Not necessarily. If you buy your next home with an assumable mortgage, you can step into a below-market rate on the buying side too. Roam helps sellers find assumable homes to buy after their sale.
Why would a buyer want to assume my mortgage? A buyer who assumes a 2.75% loan instead of borrowing at today's rates saves hundreds of dollars every month. For example, on a $325,000 balance, that difference can exceed $900 a month, or over $10,000 a year.
What is the mortgage rate lock-in effect? The rate lock-in effect occurs when homeowners avoid selling because giving up their low mortgage rate makes buying a new home unaffordable. It has kept millions of sellers on the sidelines, reducing housing inventory nationwide.
How does Roam help sellers with low mortgage rates? Roam matches sellers with local agents who specialize in assumable mortgages, markets your low rate as a premium feature of your listing, and manages the loan transfer at closing. Sellers who list with Roam see over 30% more buyer inquiries, sell for over 5% more — and walk away with no liability on the transferred loan.