How to Take Over a Mortgage

How to Take Over a Mortgage
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Taking over a mortgage, also called assuming a mortgage, is a procedure of assuming the payments of an existing mortgage. Taking over a mortgage is a good idea if the interest rate on the mortgage is lower than current interest rates. Mortgage lenders decide whether to allow you to take over a mortgage and have the right to change or modify any terms in the existing mortgage. Certain steps must be taken with the mortgage lender before you can assume a mortgage.

Set up an appointment with the lender of the mortgage loan you want to assume responsibility for. The seller of the mortgage tells you who the bank lender is.

Fill out any forms the lender needs to prequalify you for the loan. In order to take over a loan, you need to show that you can make the payments.

Pay any closing fees for the assumable mortgage. You will typically at least pay for the title insurance and appraisal costs.

Pay the seller the amount between the selling price of the home and the loan amount. If the loan amount is $110,000 and the seller is selling for $120,000, you pay the seller $10,000.


  • Avoid taking over a mortgage if the interest rate of the existing loan is higher than current interest rates. The home should be appraised above the amount of the loan. Some homes have lost value and owners have what is called an upside down mortgage, in which the amount of the loan is larger than the home's market value.