Is it possible to keep my low rates while moving mortgage to LLC?

Tax & Legal
1

For reference, I have Rocket Mortgage (Quicken Loans) as the lender (gave me the best rates at the time) and I’m not sure if anyone had any experience with it. I did the “house hack” method so the FHA loan and low rates were great. I saw something about a due-on-sale clause and a mortgage acceleration clause.

I don’t want to give up my current rates. If there’s no option I’ll keep them in my name but if there’s a way to transfer to LLC without having to mess with my rates or financing or whatever I’d be very happy

2

@land_master what does MFH mean? Multi-Family Housing?

I’ve heard that with subject-to deals, even if the lender has a due on sale clause, a lot of them won’t care as long as the payments keep coming in. This may be different when there’s a huge change in the interest rate, but maybe it’s a case-by-case thing.

3

@land_master

  1. find and read your agreements
  2. they probably have “due on sale” clauses
  3. the people who sell courses on “subject-to” will tell you that “banks never enforce that” - but I’ve seen evidence to the contrary.
  4. if all else fails you can always call the bank and ask.
4

Contact the bank and tell them that your financial advisor has told you to put the house into a LLC for estate planning purposes. Ask for the person to speak with to get all of the paperwork correct on their side.
FYI, I have done this with Trusts a number of times without a problem, but in the case of a rental property my insurance rates went up significantly. For some reason the insurance companies like individuals over entities.
Good luck!

5

From what I’ve seen, it’s usually very hard. Most lenders treat moving a property into an LLC as a new mortgage, so the old low rate won’t carry over. It’s worth speaking to a broker, though — they can confirm options and whether the numbers still make sense.