What Is Assumable Mortgage?
An assumable mortgage lets a buyer take over the seller's existing loan — including its interest rate and remaining balance — instead of taking out a new mortgage, subject to lender approval of the buyer's qualifications.
Why it matters
Assuming a loan with a below-market rate can be a major advantage when current rates are much higher than the existing loan's rate.
More Financing Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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