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If you buy property and take over an existing mortgage, you use the amount you pay for the property, plus the amount that still must be paid on the mortgage. Example: Jan buys her home for $60,000 cash and assumes a mortgage of $240,000 on it. The starting point for determining her basis is $300,000. Awards.
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Mortgage refinancing isn’t a new concept, but whenever there’s a significant drop in mortgage rates, it’s not unusual for mortgage lenders to receive an influx of applications. Refinancing is the process of attaining a new mortgage to pay off an existing mortgage. The new mortgage comes with entirely new terms, which are typically better for the homeowner.
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