Difference between revisions of "Mortgages and Financing a Home Purchase"
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An assumable mortgage means that if you sell your house, a buyer can take over your mortgage. If interest rates have gone up since you got your mortgage, the lower interest rate of your assumable mortgage will be a good selling point. If a mortgage can be assumed with qualification, it means your lender must approve the buyer before the buyer can assume the mortgage. | An assumable mortgage means that if you sell your house, a buyer can take over your mortgage. If interest rates have gone up since you got your mortgage, the lower interest rate of your assumable mortgage will be a good selling point. If a mortgage can be assumed with qualification, it means your lender must approve the buyer before the buyer can assume the mortgage. | ||
If the buyer can assume your mortgage, it’s very important to make sure that you won’t still be responsible if the buyer later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a buyer under Section 24 of the Property Law Act. Once the lender approves the buyer under this section, you are no longer responsible for paying the mortgage. | If the buyer can assume your mortgage, it’s very important to make sure that you won’t still be responsible if the buyer later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a buyer under Section 24 of the ''Property Law Act''. Once the lender approves the buyer under this section, you are no longer responsible for paying the mortgage. | ||
==What is a portable mortgage?== | ==What is a portable mortgage?== | ||