what does assumable mortgage mean

What is an Assumable Mortgage? An assumable mortgage allows a buyer to take over a seller’s home loan. Not all loans are assumable – typically just some FHA and VA loans are assumable. An assumable mortgage is one that a buyer of a home can take over from the seller – often with lender approval – usually with little to no change in terms, especially interest rate.

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An assumable mortgage is a mortgage where the seller of a house transfers his or her remaining mortgage to the buyer of a house. So, once the buyer of the house gets legal ownership of the house, he or she simply continues to pay the mortgage that the previous owner was paying.

An assumable loan may be very attractive to potential buyers if current interest rates are higher than when the seller took out the mortgage. ? The buyer can continue to make payments at the seller’s lower rate rather than at the higher market rate.

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An assumable mortgage allows a buyer to assume the rate, repayment period, current principal balance and other terms of the seller’s existing mortgage rather than obtain a brand-new mortgage.

An assumable mortgage is an arrangement in where an outstanding mortgage and its terms can be transferred from the current owner to a buyer.

Best Answer: An assumable loan is one that the lender will allow a new buyer of the property to legally assume the mortgage from the seller of the property. The lender normally charge one point for this transaction. You also have to qualify under the lender’s guide lines. So your credit score and other credit will have a bearing on if you will get the hou

Definition – What does Assumable Mortgage mean? An assumable mortgage is a mortgage where the seller of a house transfers his or her remaining mortgage to the buyer of a house. So, once the buyer of the house gets legal ownership of the house, he or she simply continues to pay the mortgage that the previous owner was paying.