assumable mortgage

robert, an assumable mortgage loan is one that can be transferred from an owner of a property to the buyer. the buyer would have to be approved by the lending institution to be able to assume the existing loan. there are very few such mortgages available these days (fha predominantly), and i am of the opinion that it is dangerous practice for a homeowner to allow a buyer to simply assume the homeowner's obligation. i've seen people get burned in allowing someone else to take over a mortgage.

Hi robert.smith2005,

Welcome to our forum.

I searched for Assumable Mortgage & i think George Sir is given perfect answer.

Thanks & Regards.
:lol: :lol: :lol:

An assumable mortgage is a loan that enables a buyer to take over a seller's mortgage when purchasing a home. Specifically, it is a mortgage that can be sold to a purchaser who promises to "assume" the mortgage debt. When a buyer assumes responsibility for a seller's existing mortgage, the buyer assumes all the obligations under the mortgage with no change in terms, just as if the original loan had been made to her. The mortgagee can, in turn, enforce the promise made by the purchaser in assuming the mortgage.

the mortgage is not "sold" to a purchaser.