Finance
An 'assumable mortgage' is one that:
ACannot be transferred to a buyer
BCan be transferred to a new buyer who takes over the payments and obligations✓ Correct
CAutomatically terminates upon sale of the property
DRequires full payoff upon sale
Explanation
An assumable mortgage can be transferred to a qualified buyer who takes over the existing loan payments and terms. FHA and VA loans are assumable (with lender qualification of the buyer); most conventional loans are not, due to due-on-sale clauses.
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