assumable mortgage

assumable mortgage definition - business

assumable mortgage

A mortgage that permits the borrower to assign the balance of the loan, without penalty, to another person when the mortgaged asset is sold. Having a mortgage that is assumable can prove to be a major benefit to a borrower, especially when market rates of interest move above the level at which the assumable mortgage specifies. See also subject to mortgage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.