Mortgage Assumption

Importance: 0.71

Is a company: no

Is a proper noun: no

Synonyms

  • take over
  • loan transfer
  • mortgage continuation
  • inherit

Definition of Mortgage Assumption

  1. 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.

Related Terms and Acronyms

  • Assumable Mortgage Definition, Very Important,
    • A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
  • 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.
  • 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.
  • Assumption Clause Definition,
    • A provision in a mortgage contract that allows a buyer to take responsibility for the loan from the seller.
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