If you’re thinking about making a move, you’re probably weighing all of your options when it comes to financing your new home purchase. Anyone who already owns a home should explore opting for a portable home loan when they’re planning a move. There are many benefits of this financing choice that can make the transition to a new home easier to manage.
What Is a Portable Home Loan?
Portability is a loan feature that allows a mortgage to follow you to your new home when you decide to move. The fact that most people have a mortgage loan that lasts 30 years means that it is common for a move to occur before the mortgage term is complete.
If you already have a mortgage that doesn’t offer portability, you may have the option to add the feature. Contact your lender to find out more about moving your mortgage to your next home.
How a Portable Home Loan Works
A portable home loan allows you to apply the financing that you have already been using to pay for your current home to a new home when you move. It is typical for people who transfer their loan to a new property to pay the same amount of interest to the same lender. Any accounts connected to the mortgage are typically accessible throughout the transfer process.
The easiest way to complete the transfer is by ensuring that the transfer of the mortgage goes as seamlessly as possible. It is recommended that the same settlement date be used for the property that is being sold and the property that is being purchased. Keeping the loan amount the same is also preferable to avoid problems during the process of transferring the mortgage to a new property.
Benefits of Portable Home Loans
There are many benefits to opting for a portable home loan when you’re moving.
• Portable home loans allow you to stay with the same lender and pay the same interest rate to better budget your new home purchase.
• The fees associated with applying for a loan do not have to be paid when you opt for a portable home loan.
• You don’t have to worry about shopping around for financing when you transfer your current mortgage to your new property.
While there are many benefits to this financing option, portable home loans aren’t for everyone. If you’d like to change the structure of your mortgage, you will need to apply for a new mortgage to do so. Consult with a mortgage broker to determine whether a portable home loan is right for you.