Back to Glossary
Assumable Mortgage
Updated
January 19, 2023
An assumable mortgage is one which provides a buyer with an opportunity to purchase their new home by taking over the mortgage payments of the previous owner. One of the primary benefits of choosing this method is that many buyers find they are assuming a mortgage with better financing and a lower interest rate - that is, if the seller purchased the home at a time when pricing and interest rates were lower. However, purchasing a home this way is not always the best option for a home buyer. Talk with a specialist today to see if this option is the best for you.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement