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Can You Transfer Your Mortgage to Someone Else?

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Illustration for article titled Can You Transfer Your Mortgage to Someone Else?

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Can you transfer your home loan to another person? Doing so certainly could be convenient: if you’re selling your home, the buyer could just take on your mortgage as part of the deal, avoiding the hassle of a new loan application, not to mention the extra closing costs. As nice as that sounds, mortgage transfers are generally not possible—but there are a few exceptions worth knowing about.

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Why you usually can’t transfer a loan

In the case of mortgage transfers, what’s good for you is not what’s good for the lender. One of the most appealing reasons for assuming a mortgage is to take advantage of a locked-in low interest rate, especially if it’s significantly lower than rates currently offered in the market (not that that’s likely to be the case right now, with rates at historic lows, according to Bankrate.com).

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To prevent this, most mortgage contracts contain what’s called a “due-on-sale” provision, which ensures that a loan must be fully repaid when a home is sold; the buyer must obtain a new mortgage.

Assumable loans are the exception to the rule

If the initial paperwork states that the loan is assumable, however, then you can transfer the financial liability for the loan to a new owner—either with or without a release of the original borrower’s liability. The new owner takes over the remaining payment and keeps the existing loan rate, repayment period and remaining principal balance. (If the loan contract doesn’t explicitly say whether or not your loan is assumable, the loan is considered assumable in most states).

Most loans are explicitly not assumable. However, according to the Lending Tree, government-insured loans like VA, FHA and USDA loans are an exception—although they still might require lender approval based on your creditworthiness.

If you’re not sure whether your mortgage is assumable, contact your lender directly to find out (and ask if there any fees involved in a mortgage transfer).

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Other exceptions

There are certain circumstances under which a mortgage transfer is necessary and permissible, and your lender will be legally barred from enforcing the due-on-sale clause. These include:

  • Death of a spouse, joint tenant or relative
  • Being named a beneficiary in a living trust
  • Transfers between family members, including the borrower’s spouse or children
  • Divorce, after which an ex-spouse continues to live in the home

In these scenarios, a quitclaim deed will be signed by the owner who is relinquishing ownership.

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When a mortgage transfer makes sense

  • The existing mortgage’s rates are lower than what’s available from lenders.
  • A family member related to the borrower is in better financial shape and is able to take on the loan
  • The mortgage can be used as an incentive for potential homebuyers, especially if the mortgage terms are favorable.

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Charge Your Phone Wirelessly With 50% off a Multifunctional LED Lamp

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Best Tech DealsBest Tech DealsThe best tech deals from around the web, updated daily.

White Wireless Charge Lamp | $18 | Amazon | Clip coupon + code ABC88699
Black Wireless Charger Lamp | $20 | Amazon | Promo code ABC88699

When you’re ready to turn in for the night, you don’t want to forget to charge your phone— especially if your mobile device doubles as your alarm clock.

With this wireless charger lamp, you can make this crucial step of your nightly routine even easier by just setting your phone on the wireless charging pad and… well, that’s all there is to it!

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Other functions include multiple lighting modes as well as a sleep timer option for auto shut-off of the light after 30 or 60 minutes.

This lamp can be yours in white for $18 if you clip the coupon on Amazon (it’s below the original $40 price) and add promo code ABC88699 at checkout.

You can snag the black version for $20 using the same code—no coupon though, sorry.

Don’t sleep on this deal! Who knows how long stock or the coupon code will last?

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Keep That Hotdish Hot With 65% Off a Luncia Casserole Carrier, Only $11 With Promo Code

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Luncia Double-Decker Dish Carrier | $11 | Amazon | Promo code SDDU9S7F

It has been a long time since the days we could safely have a potluck or other gatherings, but we have a fantastic deal perfect for once those times return. These double-decker Luncia dish carriers can be had for 65% off when you add promo code SDDU9S7F at checkout and clip the coupon on the site (it’s just below the price). These holders fit 9″x 13″ sized baking dishes.

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That means you can insulate and keep two dishes of food warm for only $11 instead of $30. What’s more, your Luncia carrier will arrive by Christmas if you order today as a Prime member.

Just add promo code SDDU9S7F and clip the 5% off coupon to bring the price down to $11 for the blue or the grey option.

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Grab this offer while it’s still around!


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Conquer Your Pup’s Dander and Fur With $700 Off a Cobalt or Charcoal Bobsweep PetHair Plus Robot Vacuum

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Bobsweep PetHair Plus Robot Vacuum & Mop (Cobalt) | $200 | Best Buy

Bobsweep PetHair Plus Robot Vacuum & Mop (Charcoal) | $200 | Best Buy

Allergies can be bad enough as the seasons change. Don’t let pet hair and dander add to that by vacuuming it up early and often. That chore is easier said than done— unless you have a robot vacuum to do the work for you. This lovely bright cobalt Bobsweep PetHair Plus robot vacuum and mop, only $200 today at Best Buy seems like an ideal option. That’s a whopping $700 off, by the way.

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You can get the same deal for the charcoal version of the robot vac, too. This model is not only specially made for picking up pet hair, it self docks and charges when it’s finished with the work.

It also comes with a mop attachment, so it can take care of those kitchen floors for you as well. Grab it while it’s still available for this fantastic price!

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