Assumption Assuming A Mortgage

Assumption Assuming A Mortgage



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​ 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.




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