What is an Assumption? - Definition

What is an Assumption? - Definition
An assumption is where a purchaser takes over (or assumes) the responsibility of paying an existing mortgage. This typically requires permission from the current lender. The seller should also

obtain a written release from the mortgage holder in order to make sure that they will no longer be liable for making mortgage payments. Although, there may be additional charges or fees involved with an assumption, it could potentially save a buyer money in closing costs and interest.