Assumption occurs when the buyer of a property agrees to become responsible for repaying an existing loan on the property. To do this, the buyer must pay the seller for any equity in the home. Then, the buyer assumes the loan with the existing interest rate and monthly payment. When a borrower assumes a mortgage, the borrower is taking over a mortgage payment from someone else while keeping the current terms of that payment intact. Once the assumption is complete, the borrower take over the payments on a monthly basis, and the person who assume the loan from is released from further liability

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