Difference between revisions of "Mortgages and Financing a Home Purchase"

Mortgages and Financing a Home Purchase (view source)

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 An assumable mortgage means that if you sell your house, a purchaser can take over your mortgage. If interest rates have gone up since you got your mortgage, the lower interest rate of your assumable mortgage will be a good selling point. If a mortgage can be assumed “with qualification”, it means your lender must approve the purchaser before allowing the purchaser to assume the mortgage.
-If the purchaser can assume your mortgage, it’s very important to make sure that you won’t still be responsible if the purchaser later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a purchaser under Section 24 of the Property Law Act. Once the lender approves the purchaser under this section, you are no longer responsible for paying the mortgage.
+If the purchaser can assume your mortgage, it’s very important to make sure that you won’t still be responsible if the purchaser later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a purchaser under Section 24 of the ''Property Law Act''. Once the lender approves the purchaser under this section, you are no longer responsible for paying the mortgage.
 ==What is a portable mortgage?==