Six years ago, Johnson purchased a house. Since he was not able to afford the total purchase price, he borrowed money from Thrift Saving and Loan. Thrift Savings and Loan issued a 5.2 percent mortgage on the house. The contract did NOT prohibit the assignment of the mortgage. Eighteen months later, Johnson secured a new job in another city and sold the house to Walker. The purchase price included the payment to Johnson of the value of his equity (sale price minus the remaining amount on the mortgage) and the assumption of the mortgage debt still owed to Thrift Savings and Loan.
1. Describe the type of mortgage Thrift Saving and Loan provided Johnson.