There may be some fees and charges to pay when porting a mortgage, such as valuation fees and legal fees related to the property you're buying. Always check with your lender first.
If porting, you will still have certain additional fees to pay, including valuation fees, arrangement fees, legal fees and possibly a small exit/transfer fee.
If you're moving home and want to take your mortgage with you, you should, in most cases, be able to do this through a process called mortgage porting. This is when you transfer your existing mortgage deal to a new property. You're not moving the mortgage, just the interest rate and terms and conditions.
The short answer is yes, you can transfer your mortgage to another person, but only under certain circumstances. To find out if your mortgage is transferable, assumable or assignable, contact your lender and ask.
Also common in the United Kingdom, mortgage porting “is virtually unheard of in the United States,” agrees Kate Wood, home expert at NerdWallet.
This will include the current terms of your loan, such as the interest rate and payment schedule. But you can't simply take your loan and plop it onto your new home. Instead, porting a mortgage often involves reapplying for your current loan, even though you already qualified once.
In general, transferring a mortgage is difficult. If you have an assumable mortgage, the new borrower would be able to pay a flat fee to assume the existing mortgage and all debt. Most government-backed loans, such as VA or FHA loans, are usually assumable. However, most other loans will not be assumable.
You have a 60-day grace period after a transfer to a new servicer. That means you can't be charged a late fee if you send your on-time mortgage payment to the old servicer by mistake — and your new servicer can't report that payment as late to a credit bureau.
Yes, family members can assume a mortgage. Federal law requires lenders to allow for such transfers in cases of inheritance, and some lenders might make an exception for transfers between parents and children.
How long does it take to port a mortgage? If your lender lets you progress with a mortgage port, moving a mortgage to your new property could take anywhere from 30 days to three months to complete, giving you time to move in to your new property.
key takeaways
Not all mortgages can be transferred to another person. If a mortgage can be transferred, the lender has the right to approve the person assuming the loan. Many mortgage lenders often include a due-on-sale clause in their loans that prohibits a home seller transferring a mortgage to a buyer.
Bank of America Wells Fargo Chase U.S. Bank PNC Bank First Republic Bank Capital One Quicken Loans Mortgage Porting is the process of transferring your existing mortgage from one property to another. This allows you to keep your current interest rate, term, and other terms and conditions when you move.
Porting a mortgage is normally a better idea when you have an Early Repayment Charge that can't be offset by the savings of remortgaging. For example, if you have an Early Repayment Charge of £10,000 on your mortgage and remortgaging doesn't save you the amount it would cost to pay the charge.
Removing a name from your mortgage: Can it be done without refinancing? Yes, it is possible to take sole responsibility for a home that you're currently sharing without refinancing, even if your ex-spouse or another co-borrower or cosigner is currently on the mortgage.
A loan assumption or modification could release a co-borrower from your mortgage without refinancing into a new loan, preserving the current state of homeownership. However, mortgage lenders aren't required to grant assumptions or modifications, so be willing to negotiate.
An assumable mortgage will let a borrower transfer the mortgage to someone else even if they haven't fully paid it off. As long as your situation fits one of the exceptions mentioned in the due-on-sale clause, another person can take over and assume responsibility for the loan.
A simple transfer of your loan from one servicer to another generally won't impact your credit on its own. Continue making on-time payments to avoid hurting your score.
This could result in a small change in the monthly payment amount. A mortgage can be transferred to a new servicing company any number of times during the life of the loan.
Yes. Federal banking laws and regulations permit banks to sell mortgages or transfer the servicing rights to other institutions. Consumer consent is not required. However, the bank or new servicer generally must comply with certain procedures notifying you of the transfer.
Lenders do offer personal loan balance transfer, where one can transfer their outstanding loan to another lender but transferring loan to another person is not very common with the lenders. So it is advisable to first check with your lender whether they do accept personal loan balance transfer or not.
Why do mortgages get sold? Many lenders specialize in originating a mortgage, but often, this initial lender can't afford to wait for 15 or 30 years for you to pay it all back. By selling it, they no longer have to keep your debt on their books, and they can offer loans to other prospective homeowners.
A home equity loan or home equity line of credit (HELOC) is a loan used to pull equity out of a first home to fund the down payment of a second home. Other sources for finding money for a down payment may include tapping into a retirement account, doing a cash out refinance, or borrowing from family and friends.
To know whether your mortgage is assumable, look for an assumption clause in your mortgage contract. This provision is what allows you to transfer your mortgage to someone else.