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Assumption Fee

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What is an Assumption Fee?

In real estate, an assumption fee is charged when you assume a mortgage from antother party. Assuming a mortgage means a buyer also buys the mortgage from the seller to avoid getting a new mortgage. This can be an attractive option when interest rates are high. Typically, the assumption fee covers all of the processing fees to transfer the mortgage.

Assignment of Mortgage Examples

Examples where you will find an assumption fee include:

  • Example 1. A buyer assuming a mortgage from a seller.
  • Example 2. A seller charging a fee to a buyer who is buying the mortgage.

Here’s Wikipedia’s definition of mortgage assumption .

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