I have a good interest rate on my mortgage but want to buy a bigger house. Can I keep / expand the same loan?

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The current interest rate is about 5.5%, and the new house would add $ 50,000 to the mortgage. Don’t want the interest rate to go up, too!

  1. Reply
    Paul in San Diego
    April 30, 2011 at 12:16 am

    No. If you buy another house, the new loan will be just that: new.

  2. Reply
    April 30, 2011 at 1:00 am

    keep it if you keep the house. If you sell the home that note will be satisfied at closing and you will get a new mortgage on the new home they don’t transfer

  3. Reply
    April 30, 2011 at 1:51 am

    You can get either a new loan on the new house or pull the cash out of your equity to buy the new home, Either way you are talking about a new loan and new loan terms. Junking eveything about your current loan and just getting a new one.

  4. Reply
    Biggie @ Arbor Mortgage
    April 30, 2011 at 2:20 am

    New loan, new rate. If you don’t want another rate besides 5.5%, you don’t want a bigger house! This is a different economy from whenever you got your current mortgage.

  5. Reply
    April 30, 2011 at 2:30 am

    No. Mortgage loans cannot be “transferred” to another property.

  6. Reply
    Dr. Diagnonsense
    April 30, 2011 at 2:42 am

    A mortgage is a loan against a given house. It’s not transferable. When you took that mortgage, you agreed that you would pay that loan back in-full, either by making all payments and retaining the house or by selling that house. Either way, there’s no way to do what you proposed.

    The only way to keep your current loan is to keep your current house.

  7. Reply
    Berlin's m
    April 30, 2011 at 3:34 am

    No, the mortgage is tied to the house. But, under some limited circumstances, if the loan is assumable, you could possibly sell both the home and the loan to a potential buyer and in doing so, get top dollar for your house because it comes with a stellar loan. There are quite a few variables to this, such as whether the loan even is assumable, if so, is there an assumption fee and how much is it, and how much is the loan compared to the value of your home. For example, if you have a loan near 80% of the value of your home, that could be very attractive to a buyer, but if you only owe 50% of the value of your property, that loan is probably a lot less valuable to a potential buyer.

    The good news though, a few lenders, such as penfed, have interest rates under 6% right now, and if you buy points you can get even lower. Today’s rock-bottom rate at penfed is 5.625% with half a point on a 30 yr fixed loan.

    Disclaimer: I don’t work for penfed or know anyone who does, I’ve just done a LOT of mortgage shopping!

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