Finance
An assumption of an existing mortgage means:
AThe buyer takes out a new mortgage
BThe buyer takes over the seller's existing mortgage obligation✓ Correct
CThe seller's loan is paid off at closing
DThe lender refinances the loan at closing
Explanation
A mortgage assumption occurs when the buyer takes over the seller's existing mortgage, assuming the obligation to make payments. The buyer is bound by the original loan terms, which may be favorable if interest rates have risen.
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