An assumable loan is a type of mortgage loan that allows the buyer to “assume” a seller’s existing loan, including the interest rate and the principal. This means that a buyer can take over the seller’s mortgage without having to apply for a new loan. The main benefit of this type of loan is that it can save buyers a significant amount of money in interest payments if they are able to assume a loan with an interest rate lower than today's market rates. Let’s take a closer look at assumable loans and why they are important today.