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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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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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Apple will replace AirPods Pro for free with faulty noise cancellation, static or crackling

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Today, exactly one year after Apple first launched the AirPods Pro — and thus the same day the very first AirPods Pro owners will see their one-year warranties expire — Apple has launched a repair program that offers free repairs or replacements for another whole year if your AirPods Pro experience issues with noise cancellation or static.

Specifically, Apple will fix:

Crackling or static sounds that increase in loud environments, with exercise or while talking on the phone

Active Noise Cancellation not working as expected, such as a loss of bass sound, or an increase in background sounds, such as street or airplane noise

Apple says only a “small percentage of AirPods Pro” are affected by the issues, but it apparently wasn’t just an early batch — Apple says affected units were manufactured “before October 2020,” meaning every AirPods Pro ever made might be eligible. That’s quite a recall if so. Apple says it will repair faulty AirPods Pro for two years after you first buy them.

We’ve heard complaints about degraded noise cancellation before, and at least one Verge editor has replaced their AirPods Pro under warranty. It’s nice to hear that Apple isn’t just cutting buyers off as soon as that warranty expires.

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