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July 24, 2001
By: Mariam Durrani
Website: http://www.1st-choice-loans.com
Assumable mortgage: a plus for the buyer
An assumable mortgage is a loan that lets the homebuyer take over the seller’s mortgage when purchasing the property. This means, with an assumable mortgage, the buyer can take over the same interest rate of the old mortgage but tailor the terms a bit, and the seller may still be liable for the loan.
If your a buyer, consider an assumable mortgage if the seller’s old mortgage has a lower interest rate than the current rate. The seller should be cautious in handing over their loan to the buyer because depending on the state and terms of the mortgage the seller may still be liable for the loan. If for some reason the property is lost the mortgage holder will come after both the seller and the buyer until the loan is paid off.
From the buyer’s perspective this can be a great deal, especially if they have poor credit and may not get such a good deal in the case of applying for a new loan. However, remember that you will still need to 'qualify' for an assumption mortgage. So if the application won’t be a problem make sure to consider the assumption fee and terms of the existing loan before making a decision. Thereafter just do the calculations to see if assuming a mortgage would be financially better than getting a new one.
For
more information on Assumable Mortgage, or to choose from a variety of related products
and services, choose from the following:
Online Auto Loans | Online Home Equity Loans | Online Mortgages | Online Payday Loans | Online Debt Consolidation
About
The Author:
Mariam Durrani is a successful author and publisher of http://www.1st-choice-loans.com.
Recommendations, links and information on home loans, mortgages and financing.
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