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20100830

Can I sell my house and keep currently existing mortgage?

Can you sell your house and retain a prior mortgage?

When you sell your house you have to pay back the mortgage, you can't sell your house and retain a prior mortgage. The mortgage lender lends money based on the security of the home. When you sell the condo or home the lender looses the security of the home and as per mortgage contract you have to pay off the mortgage. However if you are concerned about the penalty for early repayments because of the sale of the house you can port the mortgage if its portable. What that means is that if you pay off the mortgage the lender will charge you a penalty but if you buy another home with a specified period (usually 3-4 months) and get the mortgage from the same lender, they will refund that penalty. So it depends why you want to seep the mortgage after selling the home. If its to keep the low interest rate and save the pre-payment penalty, you can. If you just want to keep the mortgage and sell the house, its NOT possible, because the real estate is the security and the reason they lend you the money.

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