(WTNH) – Now to a little-known mortgage method and the big question that goes with it- is it too good to be true? Interest rates are still at an all-time high but some home buyers are still getting them for as low as three percent.

We are Stretching Your Dollar with how it works.

With the sky-high interest rates now topping seven percent, which is their highest level in decades, the dream of home ownership is stretching even farther out of reach for many Americans.

But some buyers are closing in on mortgages rivaling pandemic rates. Some as low as three percent are generating buzz on TikTok.

It’s called an Assumable Mortgage Loan. A rare and little-known option that allows homebuyers to take over a seller’s home loan and even keep the original mortgage rate.

Here’s an example of how it works. Let’s say you’re looking at a home that costs $500,000 and the seller’s remaining loan balance is $250,000. You’ve got to come up with an additional $250,000 either with your own cash or another form of financing.

“It’s not that easy. Most mortgages are not assumable. So this is something that buyers definitely should ask, and if Sellers have an assumable mortgage, this might be something they want to advertise,” said Realtor.com’s Executive News Editor, Clare Trapasso.

As of July, nearly 22 percent of mortgages were eligible, meaning they’re backed by government programs that offer this feature like loans through the Department of Veterans Affairs.

The company Roam recently launched in five states to help homebuyers utilize the assumable mortgage method.

Roam CEO and founder, Raunaq Singh – “For buyers, the largest benefit we bring is the ability for them to assume a mortgage with a monthly payment that is, about half of what they might get at today’s prevailing rates, which means that they can buy more home for less money,” Roam CEO and Founder, Raunag Singh said.

While the prospect of a lower interest may sound exciting, some experts warn buyers to beware.

You have to realize you’re actually buying the seller out of their mortgage, so the equity they’ve accrued in homes has to be paid at closing. However, what’s left can be paid using the smaller interest rate.