A mortgage that can be transferred to another borrower. This mortgage (often shortened to assumable) let a future buyer of property take over (assume) the monthly mortgage payments of the current borrower (homeowner). A typical assumable mortgage doesn’t contain a due-on-sale clause which would otherwise require the seller pay off the full amount of an existing mortgage before the property can be sold. Furthermore, an assumable mortgage doesn’t require that the lender run a credit check and background investigation on the new buyer.
January 9, 2025
