Why might a buyer want to assume a loan?

A buyer might want to assume a loan primarily because the existing loan has a lower interest rate than current market rates. When interest rates rise, buyers looking to enter the housing market may find it financially advantageous to take over an existing mortgage that has more favorable terms. This assumption allows them to benefit from the lower monthly payments associated with the earlier, more favorable loan rate, which can enhance affordability and make a property more attractive.

This scenario is particularly compelling in a market where new loan rates exceed those of existing loans, meaning that not only does the buyer bypass some of the challenges of securing new financing, but they also lock in savings over the duration of the loan compared to current lending costs. Consequently, this strategy aligns with the buyer’s financial interests in minimizing expenses related to homeownership.

The other options, while they may highlight considerations that could influence the buyer's decision-making, do not directly illustrate the primary financial motivation behind assuming a loan.