Assumption, Assuming A Mortgage (3)

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Assumption, Assuming A Mortgage (3)

  1. 1. Assumption, Assuming A MortgageAn assumption is the agreement between the buyer and the seller where the buyer takes over thepayments on an existing mortgage from the seller. Assuming a mortgage can usually save the buyermoney 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 onclosing costs and assume a low interest rate.Another benefit associated with assuming a mortgage is that a portion of the mortgage has alreadybeen paid by the seller. Also, there is little doubt that the house has appreciated since the sellerpurchased 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 thataccompanies traditional mortgages. So be sure to consult the appropriate parties such as a realestate 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 ifthis sounds like a fit to you, than it is definitely worth the time you take to research it.real estate encino

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