An assumption fee is a charge levied by a lender on a buyer who assumes the existing loan on the subject property.
A blended rate is an interest rate applied to a refinanced loan that is higher than the rate on the old loan but lower than the rate offered on new loans. It is generally offered by the lender to induce homebuyers to refinance existing low-interest rate loans as an alternative to assuming the existing loan.
A 'Closed Period' is a term in a mortgage agreement that prevents the borrower from prepaying the mortgage before the agreed-upon time period. This is commonly seen in commercial real estate mortgages but rarely in residential mortgages.
A due-on-sale clause is a provision in a mortgage agreement that requires the full repayment of the loan when the property is sold.
A real estate acquisition strategy where buyers use minimal or no cash down payments, often relying on seller financing, existing loan assumption, or other creative financing methods to achieve maximum leverage.
