Assuming a Lower Rate Mortgage? It may seem like a great idea to assume a low-rate mortgage and then get a Home Equity loan to cover the cost of any repairs you would like to make. Depending on what you would like to do, it may make more financial sense to refinance to pull out that equity.  HELOCs typically float with the market.  If rates go up, they can get really expensive fast!  Let’s do the numbers on your situation to see what makes sense for you!