Define: What is an assumable mortgage?
Definition of assumable mortgage: An assumable mortgage is a mortgage loan that can be taken over by the buyer once a home is sold. An assumption of a mortgage is a transaction where the buyer of real property takes over the seller’s existing mortgage. The seller will remain liable unless released by the lender from their obligation. If there is a due-on-sale clause, the loan may not be assumed without consent from the lender.