Bank of America Wells Fargo Chase U.S. Bank PNC Bank
First of all, most lenders will only port a fixed rate mortgage. If you're on a variable rate you will likely be required to change to a fixed rate for your lender to port your mortgage.
There's a possibility you won't be able to port your mortgage at all. Some lenders allow mortgage porting, while others do not. If you're planning to move home during the term of a mortgage, this is a very important feature to have. A mortgage broker will be able to tell you which lenders are portable.
Chase Home Mortgage Corp., which has four branch offices in California among 44 nationwide, expects to begin the new fixed-rate home loan program next month. The portable mortgage will allow customers to transfer their mortgage to a new home without having to pay either a higher interest rate or more in points.
If you're selling your current home and moving to a new one, you may want to port your mortgage. Your principal amount, interest rate, remaining term and amortization period move from your current to your new house — and you won't have to pay a prepayment charge.
Portable mortgage option
If you want to refinance your mortgage or purchase another home and would like to avoid paying a prepayment charge, you can transfer the existing terms of your fixed rate mortgage or your Homeowner ReadiLine fixed rate closed instalment to a new mortgage of the same type.
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.
Credit checks & change of circumstances
If you've missed any mortgage repayments on your current mortgage, you may also find it difficult to port your mortgage as lenders have been known to reject applications for porting in the hopes that you will voluntarily exit your mortgage agreement with them.
However, if you have a conventional loan from one of the major banks like Bank of America or Chase, recasting your mortgage is possible. (Take note that very few jumbo loans can go through mortgage recasting.) It would help if you spoke to your lender to let your intentions be known and be informed of your options.
Most larger banks like Wells Fargo or Bank of America offer a recast, but smaller local banks or credit unions may not offer the option. You must have enough money. Most lenders require a minimum $5,000 payment to recast a loan.
Porting your mortgage is the quickest option:
This isn't always true. If your circumstances have changed or you're moving to a more expensive property, mortgage porting can take just as long as a new application.
If the sale and purchase doesn't happen simultaneously, most lenders offer a period of grace, usually up to 30 days. If the delay is longer, most won't allow you to port your current deal.
Porting your mortgage lets you transfer your existing interest rate and terms to your new home. * If you have a great rate, chances are you won't want to lose it!
You can apply to port your existing deal if you'd like to borrow more, borrow the same amount, or less.
Fannie Mae generally will consider requests for transfers of either all or a portion of the mortgage loans and/or acquired properties that a servicer services and/or manages for it.
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.
Here's a list of companies that MAY allow mortgage "porting". 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.
Yes, if you pay down the principal balance ahead of schedule, you will be eligible to recast your loan again.
Not all lenders offer mortgage recasts, and not all loans are eligible for a recast (for example, FHA/VA and USDA loans do not permit a recast option). Additionally, there may be restrictions regarding how much you owe, how much you've paid and your payment history.
It is possible to port a mortgage if you have bad credit, but it won't always happen. All lenders see those borrowers who have poor credit as being a risky investment, and as a result, they tend to reject such applicants.
“FHA loans are typically assumable but depend on the current state of the loan and the creditworthiness of the new borrower at the time of attempted transfer,” says Segura, adding that to complete the transfer, the new borrower would have to go through the application process and may need to have a property appraisal ...
Your account was transferred because your previous servicer sold your loan to us, your new servicer. It is very common for mortgage loans to be sold between servicers. Hundreds of thousands of loans change hands in this way every year.
A portable mortgage option lets homeowners in a fixed rate mortgage transfer their existing loan balance, interest rate and remaining term to a new property. For illustrative purposes, below is an example of BMO's simple portable mortgage option. For more information, resources and tools, visit the BMO Mortgage Minute.
The bottom line: BMO, formerly BMO Harris, is a strong mortgage lender overall. It has a good range of loan types to choose from and affordable options for first-time homebuyers, including a PMI-free option and down payment assistance.
The bank sold my mortgage loan to another bank without my permission. Can it do this? Yes. Federal banking laws and regulations permit banks to sell mortgages or transfer the servicing rights to other institutions.