Q: The house I want to buy has a mortgage at a 3 percent interest rate, and my agent says the loan might be “assumable.” Rates today are more than double that. Can I really just take over the seller’s loan and keep that low rate instead of getting a new one? What is the catch? — Marcus

A: I understand the appeal. A rate like that feels like finding money, and in today’s market it practically is.

The good news is that the low rate is real, and sometimes you can take it over. The catch is that reaching it often requires more cash than people expect. Let me walk you through both sides.

Start by checking whether the loan can be assumed at all, because most cannot

Government-backed loans, such as those insured through federal housing, veterans, and rural development programs, are generally assumable if the lender approves you.

Most conventional loans, which make up the majority, almost never are. They carry a “due on sale” clause that lets the lender demand the full balance the moment the house changes hands.

So before you get attached, have your agent confirm the exact loan type. A listing that says “assumable” means little unless the lender confirms it.

Now, the catch is that this is where many loan assumption deals fall apart. When you assume a loan, you take over the loan balance the seller still owes, which may be less than the amount of loan you will need to buy your new home. Those can be very different numbers.

For example, if the seller owes $300,000, but you are buying the house for $480,000. You assume the $300,000 at that dream rate, but you still owe the seller the other $180,000 in cash at closing.

Most buyers do not have that kind of money sitting around, and a great rate does you no good if you cannot bridge the gap.

There are ways to cover it. Some buyers use their savings, while others take out a second loan for the difference, though that second loan carries today’s higher rate.

The trick is to blend the two rates and ensure the combined payment still beats a standard new mortgage. Sometimes it wins by a wide margin, and sometimes the gap financing eats up most of the benefit, so run the actual numbers before you fall in love with the idea

Plus, you still have to qualify for the loan, because assuming a loan is not a shortcut around credit and income approval, and the lender will still underwrite you much like any other borrower.

Here is my advice. If the loan is government-backed and you can cover the gap without stretching yourself thin, an assumption is one of the best deals in this market and well worth pursuing. Ask the servicer for the assumption package in writing, expect it to move slowly, and have a real estate attorney review the paperwork to ensure the seller is fully released and you are not inheriting a surprise.

Handled properly, you could spend the next 30 years paying a rate the rest of us can only envy.

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