What is an assumption clause?
The Bankrate.com financial term of the day is: "Assumption Clause"
Let's face it: Taking out a mortgage can be something of a hassle, given the fees and the stack of papers you sign until your fingers are ready to fall off. If you're buying a home from a seller who has it mortgaged at an attractive interest rate, wouldn't it be easier just to take over that mortgage? You can -- if the mortgage has an assumption clause. It's a provision that allows a buyer to assume the seller's existing home loan.
A home's current mortgage can be part of the bargain if the seller's loan contract includes an assumption clause.
To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.
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