Finance
A 'mortgage assumption' in Connecticut allows a buyer to:
ATake title without assuming any debt
BTake over the seller's existing mortgage, including its balance, rate, and terms✓ Correct
CGet a new mortgage at the same rate as the seller's
DAvoid paying closing costs
Explanation
A mortgage assumption allows a qualified buyer to take over the seller's existing loan terms—including the interest rate and remaining balance—subject to lender approval. FHA and VA loans are generally assumable.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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