Transferring your mortgage to a buyer

[Aaron Millis]

Hi BP,

I've got a rental that I renting/selling to someone on a rent to own agreement- the home is still in my name.

We are at the point where they are about ready to buy the home outright. However I do have a good interest rate on this home (2.375%) on a mortgage with 28 years left. They payment would be better than one they would get on a new loan.

We would like for ownership to be transferred to them while keeping the same mortgage/interest rate. I think I've heard that banks don't typically let this fly, and that the "due on sale clause" can be used if you transfer ownership.

If that's correct, are there other options to make this work?  They have been great to work with and I'd like to help them out if possible.

Thanks!