What is a mortgage assumption?

To keep it simple, this means an existing property title or ownership and mortgage obligation is transferred from one borrower to another as part of a property sale. When a mortgage is assumed, its remaining balance, payment schedule, interest rate, and escrow account and balance (if applicable) are preserved. Not all mortgages are eligible for assumption.

Continue reading below to learn about potential advantages, eligibility requirements, the assumption process, and more.

Note: In some cases, a mortgage can be assumed as a result of a divorce involving the original borrower, or due to the death of an original borrower where the successor has been established and the title has been transferred.