What is an assumable mortgage?
The Bankrate.com financial term of the day is: "assumable mortgage."
When you buy someone's home, wouldn't it be a lot easier to get their mortgage, too, without all the hassle of having to take out a fresh loan of your own? With an assumable mortgage, you can do that. It's a home loan that can be transferred to another borrower. That might be a big plus when interest rates are going up and the seller has a mortgage with an older, lower rate.
When a home seller has an assumable mortgage, the loan can be part of the package for the buyer.
To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.