Assumption refers to acquiring title on property on which a mortgage already exists and agreeing to be personally responsible for the terms and conditions of the mortgage.

Features of assumption are as following:

1. It is an agreement between the buyer and the seller.
2. Buyer takes over the payments on an exiting mortgage from a seller.
3. By assuming a loan a buyer can save his money and can get a very profitable mortgage deal.
4. This is an exiting mortgage debt, unlike a new mortgage where higher rate of interest applies.

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