Assumable mortgage
Definition
A mortgage contract that allows, or does not prohibit, a creditworthy buyer from assuming the mortgage contract of the seller. Assuming a loan will save the buyer money if the rate on the existing loan is below the current market rate, and closing costs are avoided as well. A loan with a "due-on-sale" clause stipulating that the mortgage must be repaid upon sale of the property, is not assumable. See Are Mortgage Assumptions a Good Deal?
Related Terms Other terms related to 'Assumable mortgage' starting with the letter 'A' Adjustable rate mortgage ARM, Automated underwriting, Annual Percentage Rate, Accrued interest, Acceleration clause Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 