Provisions of the Real Estate Mortgage in Key West

Key West Assumable mortgage

An assumable mortgage allows you to transfer your existing mortgage debt to the real estate buyer of your home in key West. The new owner would "assume" (take over) your Key West mortgage and pay you the difference between the amount you still owe and the agreed-upon sale price. Most Key West lenders no longer allow buyers to assume mortgages. They generally insist on a "due-on-sale" clause under which the buyer must get a new real estate mortgage. Some assumable mortgages remain on the market, however. If the interest rate is attractive, you should explore these. Some lenders will allow a mortgage to be assumed by charging a fee or adjusting the interest rate on the assumed mortgage. Prior to assuming a mortgage, a prospective homebuyer should obtain a written statement from the original lender stating:

• the amount still owed on the loan;

• the rate of interest for the remainder of the loan;            

• the length of the repayment period remaining; and

• when the lender has the right to call in the loan (order payment of the entire amount) or change any of the existing terms.

Before the loan can be assumed, the lender may require the buyer to go through the lender's normal loan-application process so that the lender is sure the buyer is credit-worthy. The particular form of loan-assumption agreement will vary depending upon your location.