Understanding Loan Assumption Math Without Going Mad

Law360, New York (March 31, 2016, 11:58 AM EDT) -- If your anxiety level rises at the thought of having to solve math word problems, then preparing the closing statement for a loan assumption transaction may have the same effect. A loan assumption transaction is rare enough and different enough from a typical sale-purchase transaction to make one pause and question whether the numbers are all there, what the numbers represent, whether they are moving targets and whether they are allocated correctly. Numbers that are usually just a seller's concern (timing of monthly payment, loan payoff calculation, escrow balance credit or refund) or just a buyer's concern (new loan fees, prepaid interest, new escrow requirements) in a sale-purchase transaction are more of a joint concern and impact the calculation of cash due at closing. Help overcome your loan assumption math anxiety by reading on — many words, few numbers....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!