Moving homes - Mister Mortgage (2024)

FAQs

Can you move if you still have a mortgage? ›

Just because you've taken out a 30-year mortgage doesn't mean you're obligated to stay in your home for 30 years; you're free to move at any point.

Crucially, if you port your mortgage you won't have to pay early repayment charges. Some fixed-rate mortgages are locked in for a certain number of years. If you're moving before that fixed period ends, you could owe thousands in fees. But if you port your mortgage to another home, you don't have to pay those fees.

Hopefully, your home is worth more than you owe. If so, then the process isn't too difficult. In short, you'll sell your home to another party, and then the proceeds will go to your bank, as they hold the title and primary claim. After the mortgage balance is satisfied, the remaining equity will be payed to you.

Many mortgages are 'portable', which means you may be able to transfer your current mortgage product to a new property. Even if your mortgage is portable in theory though, you may still be blocked.

The contract terms will determine when you can move in after closing. In some cases, it will be immediately after the closing appointment. You will receive the keys and head straight to your new home. In other situations, the seller may request 30, 45 or even 60 days of occupancy after the closing of the home.

With closed, variable-rate mortgages, the prepayment penalty is typically three months' interest on the amount prepaid. Some lenders will base the penalty on your mortgage rate, others might use their prime rate. The more you exceed your prepayment limit, the higher your penalty will be.

There are several ways you can go about facilitating this. Refinance the loan – Mortgage refinancing refers to the process of obtaining a new home loan. At the time you refinance, your new mortgage loan will repay your old mortgage loan in its entirety, leaving you with a single loan and monthly payment.

Losing or Keeping Your Earnest Money

Lawyers may also get involved in complex or commercial transactions. If the buyer simply changes their mind, they will most likely lose their earnest money.

Who pays off a mortgage at closing? ›

Actually, At closing the buyer pays the seller the agreed on sale amount. The title company handling the transaction takes those funds and pays off the existing mortgage that the seller had on the property. At the same time the title company installs a new mortgage on the property in the name of the buyer.

Porting a mortgage essentially means transferring your mortgage to a new house. 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.

You usually can move house during your fixed-rate period providing you can afford any fees involved. But whether you should or not, and if you do, whether you should move your existing mortgage or take out a new one, are different questions.

The relocation mortgage (relo) is a type of alternative mortgage product designed explicitly for relocating and transferring employees as part of an incentive package. Relocation mortgages often involve financial contributions by the employer as part of the package.

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.

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.