Question by Navid H: Is it possible to somehow transfer my current mortgage to another house?
I need to move in about 6 months, this pharmacy but my current mortgage has a nice 5.1% rate. If I sell my current house and buy a new house, approved ed I’d be in the 7% range, shop which means I have to get a smaller house. Is there any options for me to keep this rate somehow? I know there are portable mortgages out there (etrade has one) that let you transfer your mortgage to another house, but I don’t have this kind of mortgage. Should I maybe keep this house and rent it out and just rent a place? Any other suggestions?
Best answer:
Answer by Treesy
Unfortunately, your mortgage is tied to that property. If the lien isn’t released (mortgage company won’t release their security if the loan isn’t paid off. It would go from a loan secured by a home to an unsecured loan… basically a glorified VISA card.), the people who buy the house will have a lien on their property for a loan they aren’t even responsible for. I would suggest talking to a Mortgage Loan officer to discuss your options. There is no charge to do this (if they try to charge you, go somewhere else.) I suggest asking credit unions if they do mortgages. They won’t try to scam you. If you can afford to keep the place as a rental, that might be a good idea.
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You’ll have to ask your lender to be sure, but I very much doubt what you have in mind is possible; think about it, if it was, wouldn’t everybody refinance at the bottom (or near the bottom) and then carry that rate around with them until they died?
If you can rent the place out for at or more than your mortgage payment that would be a great plan. You would continue to build equity on someone else’s money. Buying a new house now you’d still get an historically great rate. Keep that up and soon you’d be Donald Trump!
Good luck. 7% is NOTHING! (When I was a kid in the UK, my folks had a 23% mortgage for a few years!)
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Mortgages run with the property. So, there is no way to transport a mortgage for a home. They may offer you a special rate if you take your next mortgage with the same company or something like that but there is no way to move one mortgage to another property.
We did a five year ARM with a balloon at the end. There are many options like interest only (pay only interest no principle). I would make an appointment with a lender for preapproval. They’ll tell you how much they’ll give you and you can lock in an interest rate. They’ll also go over all the different lending options that are best for your lifestyle.
Hope this helps!
the only way you can transfer a mortgae from one property to another is if the current mortgage you have is “assumable.” If it is assumable, then you can transfer the mortgage. All you have to do is supply the new property info to the lender. However, most lenders do not allow their mortgages to be assumed any more. So you will find that you need to apply for a new mortgage for the new property.
Look at the “Truth in Lending Disclosure” that was provided to you in your original loan docs and towards the bottom of the page it will indicate if your mortgage is assumable or not. Email me with any questions. Good luck!
NO.
Dear Navid:
No. Your loan is secured by a mortgage on a particular piece of property. If it is assumable, it means that the person purchasing your home from you may be able to assume the balance of the mortgage, and continue paying the loan. You, as the seller, are no longer responsible for the mortgage payment. Not many lenders do this any more. Most assumable loans are FHA/VA.
If you don’t need to sell the house for a downpayment, you may want to consider renting it out. However, you’ll now be responsible for 2 mortgage payments. Please note that most underwriting guidelines count only 75% of your rental income.
I tried to look up a portable loan on E-trade. The information is 3 years old. I’m not sure if they still offer this program. When they offered it, there were some criteria that needed to be followed: 1. You need to have 20% down. 2. The loan was adjustable. 3. You hade to have a certain credit score. 4. The home had to be owner occupied. 5. You could only transfer the loan once.
In addition, they noted that it did not have the lowest rate and was more of a loan offered to “provide peace of mind”
I am sorry to say that I could not find more updated information on E-trades website and was on hold for over 5 minutes trying to get an answer.
I hope this helps you. Please contact me at amkornele@yahoo.com.
Best of Luck!!
Anne