What does assumable mortgage mean?

assumable mortgage meaning in Law Dictionary

MORTGAGE which can be transmitted from the original borrower to a new purchaser of main residential property. The assumability function gets rid of the need for the first LOAN is paid back and a new loan becoming organized, which lowers time and cost elements.

assumable mortgage meaning in Business Dictionary

Loan agreement that doesn't have the alienation clause or the due-on-sale term frequently contained in such agreements. Assumable mortgage are transferred to (are believed by) a brand new borrower for a passing fancy terms and rates because the initial mortgage, upon repayment of assumption fee. Also known as assumable loan.