Mortgage Advisors

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Assumable Mortgage

An assumable mortgage is one that can be transferred from a seller to a buyer. Once the loan is assumed by the buyer, the seller is no longer responsible for repaying it. With an assumable mortgage, the transfer may carry a fee and/or a credit package. This type of mortgage can be transferred with no change in terms. The original lender, however, must agree to the transfer of an assumable mortgage. Lenders will probably require that the buyer meet certain requirements to qualify. Assumable mortgages can be attractive when there has been an increase in interest rates, because the new buyer can enjoy monthly payments at the original rate.