A mortgage assignment refers to the transfer of mortgage ownership from one lender to another. This happens when the mortgage holder wants to “switch” his or her mortgage to a new lender.
In a mortgage assignment, the key terms of a mortgage, such as the amount, amortization period and parties to the mortgage, cannot be changed. In cases where changes to these terms need to be made, the homeowner would typically undertake a refinance as opposed to a mortgage assignment.
Spy Tip: Most lenders cover your legal and appraisal costs when you switch your mortgage to them. But you must have a standard charge mortgage. Lenders don’t typically cover legal and appraisal costs if you have a collateral charge or a secured line of credit.« Back to Glossary Index