Every so often I’ll window shop Redfin. One listing yesterday included the assumable VA loan at 2.75%. I’ll assume that’s a big time selling point even if it’s just half the mortgage (due to growth / paying down the mortgage).I don't understand how it works but I recently heard from a dad on our kids softball team that he just bought a house. He tried to get the seller to somehow transfer the current loan over to him at the lower existing rate. Didnt know this was a thing They were hesitant to do so and instead he did the math and showed them what a higher rate does to him and instead negotiated a couple hundred thousand off the price to account for the higher rate. (1 mil plus loan). He said he then Bought down the rate for the first couple years (also didn't know you could do that) with the idea that rates will come down in 2-3 years and then he can refi. He's in the commercial real estate development business and obviously has a lot of knowledge on how to swing deals.
Yes, if the seller is willing (and able) to do assumable that is big selling point. Most agents knew nothing about assumable until the last 18 months but they are learning quickly. The biggest issue is in many of today’s cases the house appreciated well above original purchase price vs the current outstanding amt of the loan. The buyer has to come up with the difference in net price so potentially that could be much larger than a normal downpayment.