FinanceQuestion 84 of 120
In a mortgage assumption, the buyer:
a.Automatically receives a new lower interest rate
b.Pays cash for the full purchase price
c.Is never personally liable for the debt
d.Takes over the seller's existing loan and its terms
Explanation
In an assumption, the buyer takes over the seller's existing loan, including its balance, rate, and terms, subject to lender approval where required. Whether the seller is released from liability depends on the lender and loan documents.
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