Finance
An 'assumable mortgage' in Louisiana is one that:
ACan be terminated early without penalty
BCan be transferred to a new buyer who takes over the existing loan terms and obligations✓ Correct
CIs assumed by the government if the borrower defaults
DAutomatically adjusts to current market rates when property is sold
Explanation
An assumable mortgage allows a new buyer to take over the seller's existing mortgage — including the outstanding balance, interest rate, and remaining term. The buyer 'assumes' the obligation to make future payments.
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