- When a property is sold, an assumable mortgage can be transferred to the new owner without the seller paying a penalty for ending the mortgage before the end of the mortgage term.
take over, loan transfer, inherit, mortgage continuation
Related Terms and Acronyms
- Alienation Clause — Definition,
- A requirement that the borrower pay the mortgage in full upon transfer of the property.
- Assumability — Definition,
- The ability of a mortgage to be taken over from the original borrower by a new borrower.
- Assumable Mortgage — Definition, Very Important,
- A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
- Assumption Clause — Definition,
- A provision in a mortgage contract that allows a buyer to take responsibility for the loan from the seller.
- Assumption Fee — Definition,
- A lender's charge for updating records when a buyer takes responsibility for a mortgage from the seller.
- Mortgage Renewal — Definition, Very Important,
- A renewal as it pertains to the mortgage industry is defined as having an existing mortgage term end and signing a new term to continue.