A legal document that requires a person buying a home to assume responsibility for the mortgage of the home builder or previous owner is known as an assumable mortgage. This allows the new buyer to take over the existing loan under the same terms, potentially benefiting from lower interest rates and avoiding new loan origination fees.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*