Resources > Glossary > Assumption

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

Assumption
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where additional expenses such as closing costs and new, possibly higher, market-rate interest charges will apply. Assumption occurs where there is an Assumable Mortgage which is a type of mortgage that allows a new home buyer to take over an existing loan from the seller.