Mortgage porting is a process that can allow you to transfer your existing mortgage from one property to another, potentially enabling you to keep your current interest rate, term, and other conditions when you move. Lenders that may allow mortgage porting include Bank of America, Wells Fargo, Chase, U.S. Bank, PNC Bank, First Republic Bank, Capital One, and Quicken Loans.
Understanding Mortgage Porting
Mortgage porting is the process of transferring your existing mortgage from one property to another. This unique feature allows you to potentially retain your current interest rate, original term, and other specific terms and conditions when you relocate. It's a valuable option for homeowners looking to move without the need to apply for an entirely new mortgage with potentially different rates or terms.
Lenders That May Allow Mortgage Porting
While mortgage porting can offer significant benefits, it's important to understand that not all lenders offer this option, and policies can vary widely. The following lenders have been identified as potentially allowing mortgage porting:
| Lender Name |
|---|
| Bank of America |
| Wells Fargo |
| Chase |
| U.S. Bank |
| PNC Bank |
| First Republic Bank |
| Capital One |
| Quicken Loans |
Please note: The ability to port a mortgage depends on the specific terms and conditions of your existing mortgage agreement and the lender's current policies, which can change. It is always recommended to contact your lender directly to confirm their porting options and eligibility criteria.
Benefits of Porting Your Mortgage
Porting your mortgage can offer several advantages, especially in a fluctuating interest rate environment:
- Retain Your Interest Rate: One of the most significant benefits is the potential to keep your existing interest rate, which can be particularly advantageous if current rates are higher than your original rate.
- Maintain Mortgage Term: You may also be able to carry over the remaining term of your mortgage, avoiding the need to start a new, longer term.
- Avoid New Application Fees (Potentially): While some fees may apply, porting can sometimes reduce certain costs associated with a brand-new mortgage application.
- Simplified Process (Compared to New Mortgage): For some, the porting process might be less complex than applying for a completely new mortgage from scratch.
Important Considerations for Mortgage Porting
While appealing, mortgage porting is not always guaranteed and comes with specific criteria:
- Lender Approval: Porting is subject to the lender's approval. You will typically need to re-qualify based on your current financial situation, creditworthiness, and the new property's value.
- New Property Eligibility: The new property must meet the lender's eligibility requirements, which may include aspects like property type, location, and condition.
- Top-Up Mortgages: If the new property is more expensive, you may need to apply for a "top-up" mortgage to cover the difference. This top-up may be at the lender's current interest rates.
- Existing Mortgage Terms: Some mortgage products or fixed-rate periods may have specific conditions or penalties related to porting.
- Contact Your Lender: Always speak directly with your current mortgage lender early in your moving process to understand their specific porting policies and your eligibility.
