It is a clause in a mortgage contract that allows the owner to transfer the property and the mortgage obligation to a new owner. If a mortgage is assumable, the owner of the property will be able to transfer the property, together with the mortgage on it, to the new buyer. Generally, the lender will still have to review the purchaser’s income and credit to ensure they are able to make the required monthly payments of the mortgage loan. Also, the lenders may charge a fee for the assumption. Learn More: What Is An Assumable Mortgage: All You Need to Know