Finance
An 'assumable mortgage' in Louisiana allows:
AThe lender to increase the interest rate when the property is sold
BThe buyer to take over the seller's existing mortgage on its current terms✓ Correct
CThe seller to remain personally liable after the property is sold
DA non-qualifying buyer to apply for a new mortgage automatically
Explanation
An assumable mortgage allows the buyer to take over (assume) the seller's existing mortgage, including its interest rate and remaining term, subject to lender approval.
Related Louisiana Finance Questions
- A USDA Rural Development loan is designed for buyers in:
- A 'wraparound mortgage' in real estate occurs when:
- Under RESPA, which of the following is prohibited?
- In mortgage lending, what does 'amortization' mean?
- A VA loan benefit is available to:
- In Louisiana, a 'purchase money mortgage' is a mortgage given by the buyer to the seller as:
- A 'construction loan' in Louisiana is typically characterized by:
- In Louisiana, which type of mortgage loan typically offers the lowest initial interest rate?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →