An assumable mortgage loan can be transferred to another person with no change in the terms. Once transferred, the new owner assumes all responsibilities for repayment and the original lender must honor all the original terms. Note that the new home buyer must be qualified to receive the home mortgage.
The mortgage transfer can include additional terms, such as an equity buyout from the original owner. In a housing market where interest rates are rapidly rising, assumable mortgages are desirable because the new owner can retain the lower original mortgage interest rate.