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What is a loan assumption?

April 26, 2017Assumption loan

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What is a loan assumption?

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An assumption is a transaction in which a person takes over responsibility for the loan exactly as it is. The terms, interest rate, principal balance and monthly payments do not change. The monthly payments are made without lapse.

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A. An assumption is an agreement between buyer and seller where the buyer takes over (assumes) payment on an existing mortgage from the seller. Depending on your existing Rhode Island Housing loan type, your mortgage may be eligible for assumption. Contact our Customer Service department at 800 854-1180 or 401 457-1180 between the hours of 8:30&#160a.m and 5:00 p.m Monday through Friday for more details. TTY/Hearing Impaired 401 450-1371.