When a borrower takes over an existing mortgage from the current borrower/owner—commonly referred to as an "Assumption of Mortgage"—there are multiple requirements that may be placed upon the party assuming the debt. Typically, the person assuming the debt will be added to the deed, which is easy to account for when using LodeStar’s calculator.
When an Assumption of Mortgage is occurring during a refinance transaction, clicking the “No” toggle within the "Deed" section within the LodeStar calculator will add the required document to the transaction.
Once added to the quote, additional fields become available.
It is important to input the greater of the consideration or market value since the deed taxes due depend on this amount. Within this section multiple deeds can be requested, and the deed page count can also be modified. Once the appropriate information is provided, the calculation provided will include any deed taxes due, as well as the deed recordation fee in Section E.