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Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.
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Common Terms 1 Common Terms 2
Phonetics: as·sump·tion \ə-'səm(p)-shən\
Past Perfect: as-sump-tion
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.
Definition 2: Thesaurus / Related Terms
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.