http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/assumable_mortgage/ http://www.debts.org/11/index/assumable_mortgage/#When:09:10:00Z An assumable mortgage is a mortgage transferred from the seller to the buyer. Assumable mortgages can prove a valuable incentive to the buyer if house hunting in times of high interest rates. Instead of taking on a mortgage with interest dictated by current market forces, the buyer can inherit a mortgage that was agreed during times of lower interest. More... The terms and conditions of an assumable mortgage are retained once assumed, unless the buyer has mitigating factors such as poor credit history. If that is the case, the lender (who must agree the assumption of a mortgage) may alter the terms and conditions which means the assumable mortgage may not be better value than what is currently being offered by lenders.It is vitally important a seller obtains written release from the lender. Without written release a seller can be held responsible if a buyer default on payments.Additional financingIf the mortgage does not cover the full cost of the home, the seller will have to find the difference through additional financing. For example, if the property is worth $300,000 and the assumable mortgage value is $250,000, the buyer will need to secure an additional $50,000 through additional financing or by down payment.What’s in it for the seller?If the seller has had trouble selling the property during times of market stagnation an assumable mortgage can be a fantastic incentive to a buyer.Make yourself at home in our Forum and find out what everyone else in America thinks about mortgages. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory.Return to Debts homepage. Assumable Mortgage 2008-07-11T09:10:00+00:00