Key takeaways – It’s common for lenders to sell mortgages after closing, and you can’t prevent it. – A mortgage sale cannot change the terms of your loan, including your interest rate, monthly payment, remaining balance, and repayment schedule. – You have important rights during…
e transfer, including advance notice of servicing changes and protections if a payment is misdirected during the transition. – While most transfers are routine, it’s worth monitoring your account to catch payment or escrow errors early. It can be frustrating to receive a letter saying your mortgage has been sold to a new company
The good news is that while a mortgage transfer can be unsettling, it’s very common. While you can’t keep the change from happening, it usually doesn’t affect your mortgage rate, monthly payment and other terms of the loan. Knowing what to expect, understanding your rights and how to protect yourself can make the process much easier to navigate.
Why do mortgages get sold? Many mortgage lenders are in the business of making loans — not holding them for the next 15 or 30 years. After your loan closes, it’s not surprising if the loan is sold several times in its lifetime to another lender, investor or government-backed entity so they can recover their money and make more mortgages.