Assuming an existing mortgage formalizes changes in the ownership of a property. A mortgage assumption, for instance, would allow ownership of the property to change without affecting the terms of the loan if a divorced couple owned the property together and one of them was awarded it in the divorce settlement. The most significant advantage for buyers is the ability to take over the seller’s interest rate, which may be lower than current market rates. The benefits include low interest payments, no down payment options, and adjustable rate mortgages. Drawbacks include stricter requirements to qualify, large payments if market rates increase, lack of 5% equity requirement, and additional fees if borrower has a less than excellent credit score. Low introductory rates are one advantage, while the possibility of larger payments over time is one disadvantage. Conventional Loans offer a range of benefits, from competitive interest rates and no mortgage insurance requirements to flexibility in loan terms and no prepayment penalties

   

      

     

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