Assumable Mortgage

 

  Assumable mortgage

A mortgage that can be assumed by the buyer when a home is sold. The borrower must "qualify" in order to assume the loan.  When you assume a mortgage, you inherit not only the monthly payment schedule, but the interest rate as well.  It can lead to big savings if the interest rate on the existing mortgage is lower than the current rate.  However, the lender can change the loan's terms. 

 

 

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