Finance
An assumable mortgage allows a qualified buyer to:
ATake over the seller's existing mortgage terms without lender approval
BTake over the seller's existing mortgage, typically with lender approval and qualification✓ Correct
CRefinance the property immediately after purchase
DObtain a new mortgage at the same interest rate as the seller's
Explanation
An assumable mortgage allows the buyer to take over the seller's existing loan terms (rate, balance, remaining term), subject to the lender's approval and the buyer qualifying. FHA and VA loans are assumable; most conventional loans are not.
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