Definition of Assumable Mortgage/Assumption: 

Assumption/Assumable Mortgage:

A type of financing arrangement in which the outstanding Orange County mortgage and its terms can be transferred from the current owner to a buyer. By assuming the previous owner's remaining debt, the Orange County home buyer can avoid having to obtain his or her own mortgage. Many times this is very favorable to a buyer. 

South Orange County Home Buyers are typically attracted to homes with existing assumable mortgages when it is a fixed rate loan and interest rates are rising. This is because they can assume the Orange County seller's mortgage, which was created when interest rates were lower, and use it to finance their purchase money loan.

 

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