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Assumable
Mortgages
The Smart Choice Loan carries an Assumable Mortgage
feature, which gives it an additional benefit as well as the
other benefits applicable for the loan. When you assume a
mortgage you inherit its interest rate and monthly payment
schedule or amortization of the loan.
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It could mean a
BIG sales tool if the interest rate on the Assumable Mortgage
carries a cheaper interest rate than the current fixed rates.
The Assumable Mortgage has to be re-qualified by the individual
lender requirements, which could include income qualification,
asset qualification and possibly, even new appraisal or property
inspection. |
The Lender can offer a partial or a full liability release,
depending on the aspects of the loan. A partial release of
liability can still hold the seller liable for the loan if the
assumption borrower defaults on the payments.
Be certain to ask if
your new loan has an assumable clause or any additional
benefits. |
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