Finance
An 'assumable mortgage' allows:
AThe original borrower to add a co-borrower
BA new buyer to take over the seller's existing mortgage with its original terms✓ Correct
CThe lender to change the interest rate at any time
DThe borrower to skip payments during financial hardship
Explanation
An assumable mortgage allows a qualified buyer to take over the seller's existing mortgage, including its interest rate and remaining term. FHA and VA loans are generally assumable with lender approval.
Related Massachusetts Finance Questions
- A 'bridge loan' in Massachusetts real estate is used to:
- In Massachusetts, a VA loan benefit is available to:
- Massachusetts deed excise tax is calculated at:
- The maximum FHA loan limit for a single-family home in high-cost areas of Massachusetts (such as Boston metro) is set by:
- The Closing Disclosure (CD) required by TRID must be provided to the borrower at least how many business days before closing?
- A construction-to-permanent loan in Massachusetts is a type of financing that:
- A Massachusetts buyer obtains a $350,000 mortgage at 6.5% interest. What is the approximate first month's interest payment?
- In Massachusetts, a conventional conforming loan must not exceed the Fannie Mae/Freddie Mac limit. In 2024, the conforming loan limit for most single-family properties nationally was:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →