Friday, February 18, 2011

Assumable mortgages

Most mortgages contain a due-on-sale or alienation clause, which means that the mortgage may not be transferred to a new buyer. Instead, the seller must pay the entire balance that is due. In contrast, an assumable mortgage allows a home seller to transfer their mortgage to the new buyer, which can help attract buyers. FHA and VA mortgage loans are usually assumable.
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