What feature of a mortgage allows a new borrower to take over an existing loan from the original borrower?

The feature that allows a new borrower to take over an existing loan from the original borrower is known as assumption. This process involves the transfer of the mortgage obligation from the original borrower to a new borrower, effectively allowing the new borrower to step into the loan without needing to refinance or obtain a new mortgage.

When a mortgage is assumed, the new borrower agrees to take on the responsibilities of the mortgage loan, including making monthly payments and adhering to the original loan terms. This can be advantageous for the new borrower, especially if the existing loan has favorable terms compared to current market rates.

In contrast, refinancing involves the borrower replacing their current loan with a new loan, often to secure better rates or different terms, which does not apply to the assumption feature. Portability refers to the ability to transfer a mortgage from one property to another while maintaining the existing loan terms, and subordination relates to the order of claims against a property, particularly in the context of multiple loans, and is not relevant to transferring mortgage responsibility.