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| Assumption, Assuming a Mortgage |
An assumption is the agreement between the buyer and the seller
where the buyer takes over the payments on an existing mortgage
from the seller. Assuming a mortgage can usually save the buyer
money since this is an existing mortgage debt, unlike a new
mortgage where closing costs and new, probably higher, market
rate interest charges will apply.
This type of mortgage scenario might just be a |
nice fit for
someone who is looking to save money on closing costs and assume
a low interest rate.
Another benefit associated with assuming a mortgage is that a
portion of the mortgage has already been paid by the seller.
Also, there is little doubt that the house has appreciated since
the seller purchased the house, so the mortgage you assume will
be less than the actual value of the |
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home.
The assumption of a mortgage loan can be tricky, and is not
without all of the paper work that accompanies traditional
mortgages. So be sure to consult the appropriate parties such as
a real estate lawyer or realtor to help point you in the right
direction.
Without a doubt, the number one benefit to an assumption is the
money saved in closing costs. So if this sounds like a fit |
to
you, than it is definitely worth the time you take to research
it.
About the author:
Jennifer Hershey has more than twenty years of experience in the
Mortgage Industry as a loan officer. She is the owner of
http://www.explainingmortgages.com/, a mortgage resource site
devoted to making mortgage terms and products easy to
understand.
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