Most lenders offer a limited timeframe, usually 30 – 120 days, to successfully port your mortgage. This means you have to find your new home and sell your old one within that time period to qualify for a ported mortgage. Your lender may not offer the lowest rates.
Porting allows you to keep your existing mortgage, including the rate and terms, and transfer it to a new property without the penalty you would need to pay if you break your existing mortgage.
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.
You'll typically only be able to transfer your mortgage if your mortgage is assumable, and most conventional loans aren't. Some exceptions, such as the death of a borrower, may allow for the assumption of a conventional loan. If you don't have an assumable mortgage, refinancing may be a possible option to pursue.
You might be able to transfer your mortgage to someone else and allow them to take over the payments without changing the terms. However, your ability to do this can depend on the type of mortgage you have and the other person's creditworthiness.
Adding a person to your mortgage without refinancing can only work if the mortgage is assumable. Federal Housing Administration (FHA) loans tend to be assumable, but other types may not be.
Porting a mortgage rate is when you buy a new home and effectively take your rate with you. It could be useful if you have a mortgage rate that you want to keep, as you'll retain the same rate as your current deal. You'll still be applying for a new mortgage, but your current rate would apply if you're able to port it.
The servicer must evaluate and process the transfer of ownership for an FHA or VA mortgage loan in compliance with applicable regulations and procedures.
You stay with the same lender, allowing you to continue along your (mortgage) way without breaking your contract and paying a sometimes costly penalty. You'll still need to re-qualify with the lender when porting your mortgage (admin fees may apply).
Your lender can refuse to let you port your mortgage. If they won't let you do it, you might have to wait until your current mortgage deal ends. This could be a short wait if you've only tied in for two years.
It can be stripped only if there is no equity in the property after deducting the payoff balances of the liens senior to the lien from the fair market value of the property. The lien is permanently voided only upon the successful completion of the reorganization plan.
Removing somebody without buying out
Either way, if you have agreed to it, it can be done relatively easily. To remove a name from a mortgage, you'll need to apply for a “transfer of equity” to remove the name from the title deeds while allowing the mortgage lender to remove them.
You can switch mortgage companies without refinancing only before the home purchase closes. After that, you can change to a different lender through a refinancing.
You may be able to move your mortgage term to another property without losing your existing interest rate, and term. You may also be able to increase the size of your mortgage. This is called "porting".
You can port your existing mortgage product to all or part of the mortgage balance. But, for the outstanding amount, the ported interest rate doesn't apply. You will need to choose a new mortgage product or deal to cover it. The equity from your existing property can go towards the new mortgage loan amount.
You can do this by contacting your mortgage lender or broker to determine. Your lender will likely require a professional appraisal of the new property to ensure it meets their lending criteria. If the new property meets the lender's criteria, you can apply to port your mortgage.
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.
Mortgage porting is more common in Canada and the United Kingdom, but it isn't widely used in the United States. Learn more about what portable mortgages are and how they work.
However, as this isn't always possible, a significant percentage of lenders will still allow you to port your mortgage product provided that you complete on the new property within a certain period of time after redeeming the old mortgage. This period would probably be in the range of 30 to 90 days.
The caller ID could display the name of a real mortgage company in hopes they can trick you into answering the phone, but this is a common tactic used by scammers called “spoofing.” If you do receive a phone call that displays the name of your mortgage company, our advice is to ignore the call and let it go to ...
Porting a mortgage isn't merely a matter of shifting the loan from one place to another; it involves a formal application process. This process typically includes a thorough credit assessment and an evaluation of your financial capacity to make repayments.
While most mortgages aren't transferable, some lenders might make an exception for transfers between parents and children. You'll need to speak with your lender to see if you're eligible and understand the requirements.
Is there a mortgage on the property? If yes, adding a co-owner may trigger the “due on sale” clause in your mortgage agreement, requiring you to pay off the mortgage in full. You'll want to find out whether you must obtain your lender's permission prior to transfer to avoid this.
When you pass away, your mortgage doesn't suddenly disappear. Your mortgage lender still needs to be repaid and could foreclose on your home if that doesn't happen. In most cases, the responsibility of the mortgage will be passed to the beneficiary of the home if there is a will.