can anyone explain an assumable mortgage to me?
January 15th, 2010 by Lenny
Related posts:
Tags: 
(?)
Subscribe In a Reader
This entry is filed under Home Mortgage. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.
-
Latest Posts:
- Can I refinance an FHA loan at a fixed rate without getting another FHA loan?
- What are interest rates in a savings account?
- are assumable mortgage safe.?
- Your Path to a More Affordable Mortgage
- Has the recent Mortgage bailout benefited anyone lately?
- What are the requirements 4 a fixed rate loan?
- Interest Rates?
- Assumable Mortgage, I think?
- interest rates?
- On a $145,000.00 home how much would some one pay on a fixed rate loan?
Yes. An assumable mortgage is just a regular mortgage but with one key difference. There is a clause in the mortgage in which the lender will allow another person to take over responsibility for repayment or to "assume" the liability for the mortgage note. The lender would have to approve the new individual and when the assumption process is complete the new person would now be legally liable for the repayment and the original borrower would be released from all liability.
The key point is that the mortgage is transferrered with NO CHANGE IN TERMS. The person assuming the loan may have to meet certain requirements to qualify and may be charged a fee by the bank. It is NOT true that the person assuming the loan can do so without having to be approved by the lender.
I have worked as a loan originator for a few banks and mortgage companies.