Assuming a mortgage loan

Assuming a mortgage loan

Very few mortgage loans are assumable and yet people still try to assume them either by breaking the rules outright or finding ways to go around them. To be able to understand more of assuming mortgage loans, I have prepared this discussion on the ways to assume mortgage loans and some ways people go around mortgage loan restrictions.

More often than not, it is the buyers of a property that is subject to the loan that are eager to assume the mortgage loan. Strictly speaking, assuming mortgage loan means that a person, usually the buyer of the property, takes it upon himself to pay the mortgage loan either with just the consent and agreement of the original mortgagor (usually the seller of the house) or with the consent of the both the mortgagor and the mortgagee( the lender).

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Reverse mortgage can help you own a home

Reverse mortgage

A reverse mortgage loan is a type of national loan programme which are offered for those who are over the age of 62. Under the assumption that a person who borrows has a spouse, the bank will process the loan using the age of the youngest spouse. Just as it is called a “reverse mortgage”, things are a little reversed in how it works because the lender pays money to the borrower, instead of the other way around in a traditional mortgage. The bank will release the home’s equity to the owners in monthly payments or as a whole amount. In the case of a reverse mortgage, the homeowner is not obligated to pay the balance until the house sells or the owner dies.

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