Finance
An 'assumable mortgage' in NC allows:
AThe lender to assign the mortgage to a new lender
BA qualified buyer to take over the seller's existing mortgage with the same terms✓ Correct
CThe seller to maintain payments after the sale
DThe buyer to reduce the interest rate automatically
Explanation
An assumable mortgage allows a qualified buyer to assume (take over) the seller's existing loan balance, interest rate, and terms — advantageous when existing rates are lower than current market rates.
Related North Carolina Finance Questions
- The federal Homeowners Protection Act (HPA) requires lenders to automatically cancel PMI on a conventional loan when the LTV reaches:
- The secondary mortgage market in real estate primarily involves:
- What is the primary difference between Fannie Mae and Freddie Mac?
- What is the purpose of RESPA (Real Estate Settlement Procedures Act) in a North Carolina transaction?
- A 'conforming loan' in North Carolina is one that:
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- Private Mortgage Insurance (PMI) is typically required on conventional loans when the down payment is less than:
- An assumable mortgage allows the buyer to:
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