Can You Transfer a Mortgage to Another House, and How Does It Work?

Homeowners wanting a mortgage transfer may wonder, “Can I change the property on my mortgage offer?” A mortgage can be transferred from one lender to another, from one servicing company to another or from one borrower to another. It is even possible for a borrower to transfer an existing mortgage from one property to another. Any of these transfers can take place without affecting the basic terms of the mortgage, such as the balance, interest rate, term and payment. This is what to know about how a mortgage transfer works so you can determine if one is right for you.

A financial advisor can help you put a financial plan together for your home buying needs and goals.

Mortgage Servicing Transfer

A mortgage servicing transfer is one of the most common types of mortgage transfer. A mortgage servicing transfer occurs when the company that owns the mortgage begins using a new servicing company. There is no limit to how many times a mortgage can be transferred over the life of the loan.

Companies that own mortgages often transfer the servicing work to another company that can handle it for a lower fee. The servicing company handles tasks like sending out the monthly account statement, accepting monthly payments, managing the escrow account and paying property taxes and hazard insurance from the escrowed funds.

When a mortgage is transferred, it does not affect the terms of the loan. The main difference the borrower will notice is that their payments are sent to a different address. Some servicing companies may have different escrow procedures and requirements, so the amount held in escrow may change. This could result in a small change in the monthly payment amount.

Mortgage Sale

A homeowner reviewing documents for a mortgage transfer.

After a mortgage lender closes on a mortgage, it is common for the lender to sell the mortgage. For example, national mortgage companies Fannie Mae and Freddie Mac buy many mortgages from lenders.

When the lender sells the mortgage, it allows the lender to make new loans. This increases the liquidity of the mortgage market, making it possible for more people to obtain loans to buy homes.

The new owner of the mortgage gains the right to collect interest on the loan. They may keep the loan to maturity or until it is paid off through a sale or refinancing. It also often happens that the new owner packages the loan with similar mortgages and sells the resulting mortgage-backed security to investors.

When a loan is sold, whether to a national mortgage company or to investors as a mortgage-backed security, it does not change anything from the borrower’s perspective. The loan amount, interest rate, term and monthly payment remain the same as on the original mortgage documents.

Mortgage Assumption

When a mortgage is transferred from the original borrower to another borrower, it is called a mortgage assumption. As with other transfers, the loan itself does not change. What changes is that a new borrower now takes over the responsibility of making the payments.

Assuming an existing mortgage can be less costly than taking out a new loan. Fees charged by the Federal Housing Administration, for instance, are lower on assumptions than on new loans. Also, an assumption generally does not require an appraisal, although the usual title search fees will have to be paid with your closing costs.

Borrowers who are financially distressed and having trouble making mortgage payments may look for a new borrower to assume the loan as an alternative to foreclosure. However, not all loans are assumable, so often a distressed property must be sold so a new mortgage can be taken out.

Mortgage Porting

Porting a mortgage is when an existing loan is transferred to a different property. This is relatively common in Canada and the United Kingdom but rare in the United States.

In any jurisdiction, porting can only happen if the lender allows it, and, especially in America, few lenders approve porting. However, if permitted, it allows a homeowner to move into a new home without having to go through the process of obtaining a new mortgage.

In order to port a mortgage, the borrower must sell the old home at the same time they are purchasing a new one. The terms of the loan stay the same, so the mortgage amount must be enough to cover the cost of the new home. Porting can help save on fees, making it a good long-term move that allows you to lock in a more attractive rate when interest rates are high.

What Borrowers Should Do When a Mortgage Is Transferred

When a mortgage is transferred—whether through a servicing change, sale, assumption or porting—the borrower remains responsible for making timely payments. However, the transfer process can create confusion if key steps are overlooked. Borrowers should take several actions to protect themselves and maintain proper account management.

Federal law requires both the old and new servicers to provide written notice of the transfer. These notices must include the name and contact information of the new servicer, the date the transfer takes effect and instructions for submitting future payments. Borrowers should review both notices carefully and compare the details to confirm they match. Any discrepancies should be addressed immediately by contacting either servicer.

Once the transfer date is confirmed, borrowers should update their payment method, including online banking systems, bill pay accounts or auto-debit arrangements. Sending a payment to the wrong entity could result in processing delays or misapplied funds. During the first 60 days following a servicing transfer, federal rules prohibit late fees for payments sent to the previous servicer, but this protection is temporary and does not apply if no payment is made.

Borrowers should also check their escrow account after the transfer to verify that property tax and insurance payments are continuing without interruption. Some servicers maintain different escrow funding levels, which could result in minor changes to monthly payments. Reviewing the first few statements from the new servicer is crucial to catch any errors or unauthorized adjustments early.

All transfer documentation—including notices, statements and correspondence—should be saved with mortgage records. These documents can help resolve disputes, verify account history and provide a reference if issues arise in the future. Clear recordkeeping and prompt action during a transfer reduce the risk of errors and help maintain uninterrupted mortgage servicing.

Bottom Line

Homeowners can transfer a mortgage from one person to another through a sale, inheritance, or lender approval.

Most mortgages call for a 30-year commitment, and they spell out the parties’ responsibilities in no uncertain terms. However, mortgages are more flexible than they may appear, and they can be transferred in several ways. Mortgage servicing transfers involve sending payments to a new company, while mortgage sales happen without any change or even awareness from the borrower’s perspective. Other types of transfers may apply when a mortgage is assumed by a new borrower or an existing loan is switched to a new property. However, if your mortgage is transferred, you will receive a notice, and your mortgage terms will remain the same, simplifying the payment process.

Tips for Homebuyers

Before taking out a mortgage, consider discussing your options with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The amount of the monthly mortgage payment is a vital piece of information when calculating whether or not you can afford to buy a home. Use SmartAsset’s mortgage calculator to see how much you’ll paying for a particular loan.