Assumption Fee
Definition
- Lenders will charge a fee to update mortgage records when a buyer assumes an existing mortgage from the seller.
Synonyms
take over, update fee, transfer cost
Related Terms and Acronyms
- Assignment — Definition,
- The transfer of a mortgage from one person to another.
- Assumability — Definition,
- The ability of a mortgage to be taken over from the original borrower by a new borrower.
- Assumable — Definition,
- A loan or obligation that can be taken over by a new borrower.
- Assumable Mortgage — Definition, Very Important,
- A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
- Closing Costs — Definition,
- The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Mortgage Assumption — Definition, Important,
- Taking over the payment and responsibility for an existing property loan.
- Origination Fee — Definition,
- The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
- Pre-paid Expenses — Definition,
- also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
