Hello Lemuel. If you are selling and buying porting your mortgage is one of your options. Porting is the process of moving your mortgage from one property to another. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. If the rates available today are lower than your interest rate then your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often don`t) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I can do these calculations for you if you like and get you information on the lowest rates available today. I hope this information has helped you Lemuel. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

Hello Monty, selling your house will mean your mortgage will have be paid off. In that case your mortgage should be ported to another property to avoid penalty. If there is no other property involved and your mortgage will just end up being paid off you could make one of your yearly pre-payment to help reduce your penalty. Most lenders will take into account any unused pre-payment privilege anyways so check with them before you go to your savings or investments to make that pre-payment. I hope this helps, if you would like to discuss anything in detail please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

ON Canada - it depends on how much you sell your house for. Normally, the proceeds of the sale of the house goes to pay off the mortgage first, lawyers fees, bank fees and any excess will then go to your pocket. If you sell your property less than the mortgage balance, you will have an issue as you still owe the bank money.

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I'm looking into selling my house. a couple of years ago, i took out a home equity loan to cover unexpected expenses. can i pay off the mortgage loan, but still make payments on the home equity loan for the remainder of it's term? i don't think i will be able to sell the house for the combined payoff of both loans.

If your equity loan is using the house as collateral and you sell the home, then yes the lender would expect you to pay of the loan. So the answer is yes, you will be required to pay off any loans, liens etc. against the property, at closing. If you find you may not have enough to cover both loans, you should be prepared for one of them to file a 1099 form to the IRS for the balance due. Which in effect grosses up your income for the year. So I would contact the lenders ahead of this scenario and see what your options are. Don't wait because it only makes you look bad and then they won't work with you.

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I have a five year term on my mortgage – which means i think that i am barely paying any of the principal off for that period of time, and am just paying off the interest. what happens if i want to move before the end of my term? where does all the money go that i’ve paid in so far?

I presume you mean you have paid on the loan for 5 years - not that you have a 5 year mortgage. Right? When you borrow money, you must pay interest to the lender. This is the lender's fee for giving you a whole lot of money that could have been loaned to someone else or used for something else. So for the years you paid interest before selling the property, the money (interest) went to the lender. The way you can gain during the early years is to hope that your home appreciates in value. Another way to look at it is "rent." If you paid rent for 4 years and then you moved, well, your money went towards the rent. Think of your mortgage payments as paying for a roof over your head for the time you stayed there. You didn't lose anything since you did live in the home - and got a tax deduction. Good luck.

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Also is there a term for this?

No..it is perfectly legal (and there is no term for this). The way it works is that you use the proceeds of the sale to pay of the mortgage first. For example, if you owe $100,000 on your mortgage and you sell the house for $125,000 (after expenses), the first $100,000 goes to pay the mortgage and you pocket the remaining $25,000. What you can't do is sell the house for less than you owe without special permission from the bank - this is called a short sale and you only get to do that if you haven't been able to keep up with payments and the alternative is foreclosure.

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Hello, here is the deal, i owe money on my mortgage, but i want to move to another city. i have a guy who loves the house, but he wants to do the owner financing. i figured i could sell it to him for a higher price than what i owe on it and charge him a yearly interest. i have explained to him that there is a lien on the house and he is fine with it. basically i see this as better than foreclosing if i can no longer live there and this way he gets to keep it if he finishes paying me the full term of the loan which will probably be 15 years. by the time he is done paying me i would have full ownership of the house and the title. then i could transfer it to his name after he finished paying me. i am asking him for a down payment and his monthly payment will include the taxes, and any insurance i pay that way i am covered. so what can i say in the contract that i create, or do i need to get some legal paperwork? help:)

Uh...you are talking about a buy to own option. Not a game for an amatuer; get a real estate atty involved to write a contract. Need language to protect you if he defaults; to protect him if you die; if you get all his payment and refuse to transfer after the agreement is completed, to keep you from placing additional liens against the property, to protect him if you default and the property is foreclosed anyway.

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Here's our situation. we need to get out of our current house and into one we can both afford and fit into. if it sold today, it would likely pay off the first mortgage, or very very close. but we have a second mortgage that there's no way it'll pay off. the second is with citimortgage (who hasn't been exceedingly helpful at this point), and i've asked them to convert it to a unsecured loan os we can sell and get into a house we can afford, and they weren't sure (well the folks on the phone weren't sure) if they could do that. i pointed out to them that currently, they hold zero equity in this house, and if we couldn't make the payments, they would get zero in foreclosure. same situation in bankruptcy. the thing is, we don't want to just cancel out their portion of the loan, we are willing to pay it back, but just can't do it right this moment. foreclosure and bankruptcy aren't an option, nor is doing what a lot of americans are doing and just walking away from a loan we signed for. unlike most americans today, we have a little more character than just walking away from a house unless we are literally faced to choose between feeding the kids and paying the second mortgage. that being said, do you have any ideas how to get them to convert the second mortgage into an unsecured loan at the same terms? it already is an unsecured loan, because they have no equity. once this is done, and the lien is released, we can sell, pay off the first, and get into a house we can afford and fit into. i'm in contact with them, though even the folks in their loss mitigation department didn't think that it could be done, but we'll find out. i hear some folks have had success personally contacting the managers and executives involved, giving them a *brief* overview, and asking them if they could help get it resolved. one thing i'll note is, these folks probably used to do things like this from time to time, or at least used to work somewhere where they were involved in the dirty day-to-day duties, and they like to feel like they're still able to make wise decisions in cases like this. i should add also, i'm willing to have them attach a lien to the new house if they want also, if that's possible. though there won't be any equity to do that.

Contact the "loss mitigation" or "workout" department of your 2nd TD lender. Normally they will do this only when you sell your home. Lenders don't usually like to deal with these matters until you have a buyer ready to buy your home at a price lower then you owe on the 1st and 2nd....otherwords a "short sale". List your property with a Realtor that has plenty of success doing short sales. I've often seen 2nd TD lenders take back an unsecured note and release their lien on the 2nd when their 2nd is basically worthless. They will investigate to see if what your are telling them is true about the declined value of your home. The process often takes several months. Also have them agree not to report anything negative against your credit rating, especially if you will be trying to purchase another home in the next five years.

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My husband and i own a 3 bedroom home in an okay neighborhood. we paid it off and own nothing on it but property taxes, insurance and home owner's dues. we can rent it out and get $900/month after all the bills are paid, money is set aside for maintenance/emergencies for the house and after we pay 8% to a property management company. we are wanting to buy another house, but we don't know if we should rent it and use the $900 in rental income towards the new mortgage or just sell it and not deal with it anymore. does it make sense to keep it long term, use it for rental income and sell it later (years down the road) for retirement when the market is at a high? any advice? *** i should add that i live in san diego county and my house is about 6 miles from the beach.

We need to know how much the house costs before we can speculate. If it (tongue in cheek) costs $10,000 dollars and you can rent it out for $900, keep it. If it (tongue in cheek) costs $2 million, then it would be best to sell it. We have to know the house cost.

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My son & partner have 1 year left of a 5 year fixed term mortgage.they have just sold house due to relationship breakdown but have been told they are liable for £6k repayment penalty. i think i heard somewhere that if the loan is kept open with say £1000 until the term finishes this is a loophole to avoid the repayment penalty has anyone done this?

Once you've sold the house you have to repay the entire loan, so its now too late. Keeping the account open with a minimal amount is OK if the only penalty is for a complete repayment, and you still have the house (eg because you've come into some money and want to pay off the mortgage). Realistically the only option would have been for them to hang on to the house until the penalty period was up, and then sell it.

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If i want to sell a house before my mortgage is up for renewal, approximately how much will the bank charge me to cancel the mortgage before my term is up? (canada if that helps)

You need to read your mortgage contract. If there is no penalty for early payoff, there will be no fees. When you sell a house, you don't really "cancel" the mortgage, you use the proceeds from the sale to pay off the mortgage. You get to keep the rest as profit. If you don't get enough from the sale to pay off the mortgage, you will need to continue making payments until it's paid off.