Finance
Which of the following BEST describes an 'assumable mortgage'?
AA mortgage that automatically pays off when the property is sold
BA mortgage that a new buyer can take over, subject to lender approval✓ Correct
CA mortgage that increases the rate automatically when assumed
DA mortgage only available to first-time homebuyers
Explanation
An assumable mortgage allows the buyer to take over (assume) the seller's existing mortgage loan at its current terms. Most FHA and VA loans are assumable, subject to lender qualification of the new borrower.
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