Is It Bad If My Mortgage Is Sold? Mortgage Loan Transfers and Sales

A transfer or sale of your mortgage should not worry you. The terms, balance, or interest rate of the loan from documents you originally signed do not change. The payment amount does not just change either. It should have no impact on your credit score.

Money is why a lender chooses to sell or transfer a mortgage loan. It frees up capital then used to make loans to new borrowers. Federal laws allow institutions to sell mortgages or transfer servicing rights.

If you get notice the mortgage sold, the loan terms do not change. Having a sold loan means the lender sold rights to service it. Mortgage servicers tend to be out of sight and mind.

Why does my mortgage getting sold affect my credit? A transfer or sale of your mortgage loan should not affect you. A lender cannot change the terms, balance, or interest rate of the loan from those set forth in the documents you originally signed. The payment amount should not just change, either, and it should have no impact on your credit score.

Leave a Comment