Credit Score For Dummies

Assumable loan allows transfer to another party. As the term suggests, another person can assume or take over the loan without change in terms and conditions. Instead of applying for a new loan, the borrower assumes the existing loan under the current interest rate.
To simply illustrate: A parcel of land was bought on credit and the buyer later on discovered that it was not suitable for his business. An assumable loan means that another interested buyer can assume the loan and get the land under his name and free the first buyer from making further payments.