An Assumable Mortgage allows the current owner of a home to sign over the outstanding mortgage to a buyer. The buyer assumes the previous owner’s remaining debt on the home, but avoids obtaining his or her own mortgage.
- As a buyer, an assumable mortgage can allow to get a lower interest rate than what might be available in the current housing market.
- Buyers can also benefit by avoiding any closing costs associated with getting a new mortgage.
- As a seller, you may be able to get premium asking price on your home, because of the money that’s being saved from no closing costs and lower interest rates.