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- You'll typically only be able to transfer your mortgage if your mortgage is assumable, and most conventional loans aren't.
- Some exceptions, such as the death of a borrower, may allow for the assumption of a conventional loan.
- If you don't have an assumable mortgage, refinancing may be a possible option to pursue.
Unplanned circ*mstances happen in life. If you're going through a divorce or unexpected illness, you might find yourself need to transfer your mortgage to another person. But can you?
The question of can you transfer your mortgage to someone else depends on the type of mortgage you have, and whether your lender allows it.
Some mortgage lenders permit a mortgage transfer if you have an assumable mortgage, and if your situation falls into one of the exceptions listed in the due-on-sale clause.
Here's what you'll need to check to see if your mortgage is transferable, and what to do if you can't.
How to know if your mortgage is transferable
To determine whether you're able to transfer your mortgage, you'll have to see if you have an assumable mortgage.
An assumable mortgagewill let a borrower transfer the mortgage to someone else even if they haven't fully paid it off. As long as your situation fits one of the exceptions mentioned in the due-on-sale clause, another person can take over and assume responsibility for the loan.
If you have an adjustable-rate mortgage or a government-backed mortgage (including FHA, VA, and USDA mortgages), you might have an assumable mortgage. If you have a conventionalfixed-rate mortgage, though, you're out of luck.
The simplest way to check whether your mortgage is assumable is to talk to your lender and get a better understanding of the lender's policies. You'll be able to go over any questions you have about your mortgage and learn more about possible exceptions a lender may allow.
What is the due-on-sale clause?
The due-on-sale clauseis a provision in a mortgage contract that requires you to pay off your loan entirely if you decide to sell the property to someone else.
But a lender may allow a few exceptions that allow you to transfer your mortgage to another person without fully paying off the mortgage first. Some possible exceptions may include when:
- The borrower dies, and a family member is planning to take over the mortgage payments
- The borrower is transferring a mortgage to a spouse or child
- The borrowers are going through a divorce or separation, and one person is taking over the loan
Should you make a mortgage transfer?
Before you decide to transfer your mortgage, take some time to weigh out the pros and cons.
If current mortgage rates are higher than the rate on your loan, it may be a good decision to assume the old mortgage. But if mortgage rates are fairly low, it may make more sense to refinance.
What to do if a mortgage isn't transferable
Refinancing your home
If you don't want to stay with your current mortgage, refinancing may be an option to pursue. When you refinance, you can add or remove a co-borrower and establish a new term.
Paying off your mortgage in cash
If you're still making payments but are in a fortunate situation where you have enough cash on hand, you may be able to pay it all off.
By paying off your mortgage, you are no longer bound by the due-on-sale clause and are able to gift or pass down your house. However, you'll want to consider these factorsif planning on paying it off early.
Selling your house
If you don't want to maintain ownership of your house anymore, selling your home will give you the funds you need to pay off your mortgage, and it may even leave you with money left over if you had additional equity in the home.
Can you transfer your mortgage to someone else FAQs
Can you just transfer a mortgage to another person?
You can only transfer your mortgage to another person if your mortgage lender allows it. If you have a conventional loan, you probably won't be able to transfer your mortgage unless you have an allowed exception.
How do I transfer my mortgage to another name?
You'll need to talk to your mortgage lender to start the process of transferring your mortgage to someone else.
Can a buyer take over my mortgage?
If you have an assumable mortgage, you may be able to transfer your mortgage to a buyer. But your lender will need to agree to this and approve the person taking on the loan.
Can I add someone to my mortgage without refinancing?
You must have an assumable mortgage to be able to add someone as a co-borrower without refinancing.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Mortgage Reporter
Molly Grace is a mortgage reporter for Business Insider with over six years of experience writing about mortgages and homeownership.ExperienceIn addition to her daily mortgage rate coverage, Molly also writes mortgage lender reviews and educational articles on homebuying and analyzes data and economic trends to give readers actionable and up-to-date information about the housing market.She also tracks affordable mortgage and down payment assistance programs offered throughout the country to keep her readers informed of homebuyer programs available to them.Before Business Insider, Molly was a blog writer for Rocket Companies and helped to create Rocket Mortgage’s Shorty Award-winning podcast Home. Made.Molly is passionate about covering personal finance topics with empathy. Her goal is to make homebuying knowledge more accessible, especially for groups that may think homeownership is out of reach.ExpertiseMolly is an expert in the following topics:
- Mortgages and mortgage lenders
- Home equity
- The housing market
- The economy and the forces that impact mortgage rates
- Budgeting and saving
- Credit
- Insurance
- Retirement savings
EducationMolly earned a bachelor's degree in journalism from Indiana University.She is based in Michigan and has a dog and two cats.
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