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Mortgage Agent Licensing Practice Exam · Question

Which of the following describes a 'portability' feature of a mortgage?

Mortgage portability allows a borrower to transfer their existing mortgage, including the interest rate and remaining terms, from their current property to a ne

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Question: Which of the following describes a 'portability' feature of a mortgage?

Answer options:

  • The ability to pay off the mortgage faster without penalty. ✅ The option to transfer the existing mortgage balance, interest rate, and terms to a new property.
  • The flexibility to convert from a variable rate to a fixed rate.
  • The feature that allows a borrower to skip a payment.

Correct answer: The option to transfer the existing mortgage balance, interest rate, and terms to a new property.

Explanation: Mortgage portability allows a borrower to transfer their existing mortgage, including the interest rate and remaining terms, from their current property to a new one, potentially saving them from breaking their mortgage and incurring penalties.

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