Finance
What does 'assumption of mortgage' mean in a Georgia real estate transaction?
AThe seller pays off the existing mortgage before closing
BThe buyer takes over and becomes personally responsible for the seller's existing mortgage✓ Correct
CThe lender issues a new mortgage replacing the old one
DThe seller remains solely responsible for the existing debt
Explanation
When a buyer assumes a mortgage, they take over the seller's existing loan and become personally liable for it. The original terms (rate, balance, maturity) remain, which can be advantageous if the existing rate is below current market rates.
Related Georgia Finance Questions
- The 'discount rate' set by the Federal Reserve affects real estate because:
- A buyer assumes a seller's existing mortgage in Georgia. This means the buyer:
- Negative amortization occurs when:
- When a property appraises for LESS than the agreed purchase price, the buyer faces the challenge of:
- A lender who charges an interest rate of 6.5% on a mortgage and the APR is 6.9% means:
- Which type of mortgage loan is guaranteed by the U.S. Department of Veterans Affairs?
- A conventional mortgage loan is one that is:
- Under Regulation Z (TILA), a right of rescission gives borrowers in a refinance transaction how many business days to cancel?
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →