As applied to mortgage loans, assumable means that a borrower who sells his or her home may transfer the outstanding mortgage loan secured by that dwelling to the new buyers. The new buyers are said to assume the loan.
A mortgage loan which can be transferred to another person without a change in the terms of the loan.
Mortgage-A mortgage, which by its terms, allows a new owner to takeover its obligations.
The ability of another individual to take over the obligation of your loan, upon sale of your home. An assumable loan may help you attract buyers if you sell your home.
Most mortgages are assumable - with qualification. So you can sell your house, the buyer can take over the mortgage.
A loan or obligation that can be taken over by a new borrower.
The feature of a loan that allows it to be transferred to the new buyer of the home that the loan is secured by.
When a mortgage is assumable, a buyer may take over the responsibilities and benefits of the sellers' existing mortgage. This may be advantageous to a buyer if the interest rate on the mortgage is below current market rates. Before assuming a mortgage, approval must be obtained from the lender.
Mortgage – Purchaser takes ownership to real estate with an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage.
Some mortgages are assumable with qualification. This means that should you sell your house before the term of the mortgage is completed, the purchaser can take over your mortgage if they qualify. This allows you to avoid paying a penalty to break your mortgage.
Describes a mortgage that can be assumed or taken over by a new owner if you decide to sell your home. Be sure to check with your lender first to make sure the new buyer is an acceptable credit risk. Not all mortgages are assumable.