An assumable mortgage is a type of mortgage loan that a home seller can transfer to a buyer. This means the buyer will take over the seller’s mortgage when they purchase the home. Buyers may want an assumable mortgage if the seller has a lower interest rate compared to the current interest rates. However, the seller’s principal amount on their mortgage may not cover the full home sale price. In that case, the buyer would have to apply for a second loan.
To learn more about assumable mortgages, talk to a mortgage loan officer.