Assumption Fee

Definition

  • Lenders will charge a fee to update mortgage records when a buyer assumes an existing mortgage from the seller.

Synonyms
take over, update fee, transfer cost

Related Terms and Acronyms

  • Assignment Definition,
    • The transfer of a mortgage from one person to another.
  • Assumability Definition,
    • The ability of a mortgage to be taken over from the original borrower by a new borrower.
  • Assumable Definition,
    • A loan or obligation that can be taken over 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.
  • Closing Costs Definition,
    • The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
  • Lender Definition,
    • The bank or mortgage company offering the loan.
  • Mortgage Assumption Definition, Important,
    • Taking over the payment and responsibility for an existing property loan.
  • Origination Fee Definition,
    • The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
  • Pre-paid Expenses Definition,
    • also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
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