So let’s first go ahead and define this word and then let’s go ahead and use it in a sentence. So an assumable mortgage is. A mortgage that can be assumed by the buyer when the home is sold, usually the buyer must qualify in order to assume this loan perfect. So that’s the definition. Use it in a sentence would be is my FHA loan assumable? Well, OK, so we use that in a sentence.
So that would be a common question that somebody might ask their lender. Can I have my loan assumed by somebody else? Why would you have it assumed? Well, you would have it assumed because you have a better interest rate on your mortgage than the current market mortgage. The current interest rate is on the market. We also might have it assumed because the person is putting down the same amount of money that you have equity wise.
Is it going to be tricky and can it really happen? It’s going to be super tricky. Can it happen? Yeah. Will it happen? I don’t know. Not probably in today’s economic climate it won’t. Where interest rates are. Will it happen in the future when interest rates go up? Probably so. So anyways, now we’ve seen that word. We’ve heard it. It has been defined for you. And let’s close that out.