When it comes to buying a home, there are several financing options available to choose from. One option that is often overlooked is a mortgage assumption. This is where the buyer takes over the existing mortgage of the seller, rather than obtaining a new mortgage.

A mortgage assumption can save the buyer time and money. Instead of applying for a new mortgage, the buyer can take over the seller`s existing mortgage. This can save on closing costs, loan origination fees, and other fees associated with getting a new mortgage.

In order to complete a mortgage assumption, a simple mortgage assumption agreement will need to be drafted. This agreement outlines the terms of the assumption and the responsibilities of both the buyer and seller.

The agreement should include details such as the name of the seller, the name of the buyer, the original mortgage amount, the current balance of the mortgage, the interest rate, and the remaining length of the loan. It should also include any additional terms and conditions, such as who will be responsible for property taxes and insurance.

When drafting a simple mortgage assumption agreement, it is important to consider the legal and financial implications of the assumption. It is recommended that both parties seek legal advice before completing the agreement to ensure that all terms and conditions are fair and legally binding.

In conclusion, a mortgage assumption can be a beneficial option for buyers and sellers alike. By completing a simple mortgage assumption agreement, both parties can save time and money while still obtaining the financing needed to buy or sell a home.