Finance
In South Dakota, which of the following is a key benefit of assumable mortgages when interest rates are rising?
AThe buyer gets a new loan at below-market rates from the same lender
BThe buyer takes over the seller's existing lower-rate mortgage, potentially saving money compared to obtaining a new market-rate loan✓ Correct
CThe seller's credit score transfers to the buyer
DThe buyer avoids all closing costs by assuming the loan
Explanation
In a rising rate environment, assuming a seller's existing lower-rate mortgage can provide significant payment savings. FHA and VA loans are assumable with lender approval; most conventional loans are not.
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