What is loan assumption?
A buyer’s assumption of the seller’s existing mortgage, usually with lender approval. It can be very valuable in a rising-rate environment when the existing loan carries a below-market rate.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.