Moving to a new home can be an exciting venture, but what happens to your current mortgage when you Move or relocate? This guide will help you understand the options available to you.

Introduction:

When you decide to move to a new home, it’s essential to consider what happens to your current mortgage. Depending on your situation, you may have several options to choose from.

What Happens to Your Current Mortgage?

When you move, your mortgage doesn’t just disappear. Here are the common scenarios:

1. Selling Your Home:

   – If you sell your current home, the existing mortgage will need to be paid off from the sale proceeds. Any remaining funds can be used towards your new home purchase.

2. Porting Your Mortgage:

   – Porting allows you to transfer your existing mortgage balance, interest rate, and terms to a new property. This is a popular option for homeowners who want to avoid penalties or break fees.

 Understanding Mortgage Portability:

Mortgage portability is a feature offered by many lenders that allows you to transfer your current mortgage to a new property without penalties. Here’s how it works:

– Benefits of Mortgage Portability:

  – Avoid paying penalties for breaking your mortgage early.

  – Maintain your current interest rate and terms.

  – Simplify the mortgage process for your new home.

– Considerations Before Porting:

  – Ensure your new property meets the lender’s criteria.

  – Understand any fees associated with the porting process.

  – Work closely with your lender to ensure a smooth transition.

What If You Can’t Port Your Mortgage?

If porting isn’t an option, you may need to pay a penalty for breaking your mortgage early. Here’s what you need to know:

Early Mortgage Termination Fees:

  – Understand the penalties and fees associated with breaking your mortgage.

  – Work with your lender to negotiate the best possible terms.

Conclusion:

Moving to a new home involves careful consideration of your current mortgage. Understanding your options and working closely with your lender can help you make informed decisions about your mortgage when you move.

Contact Orange Mortgage Company Today:

Are you planning to move and have questions about your mortgage? Contact Orange Mortgage Company today