Assumable Mortgage
A mortgage that can be transfered with no change in terms. If anassumable mortgage is transferred, the buyer assumes allresponsibility for repayment. The original lender must agree tothe transfer of an assumable mortgage. The seller should receivea written release from the original lender stating that he/she hasno responsibility for further payments. The buyer may have to meetcertain standards to qualify and may be charged an assumption fee.Assumable mortgages can make a property more desirable if interestrates have risen, because the new buyer's payments are at the originalrate. By definition, assumable mortgages cannot have a due-on-saleclause.
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