What Is a Portable Mortgage?

What Is a Portable Mortgage?

A portable mortgage stays with the borrower if they choose to sell their home and buy another property. That's different from the way U.S. home loans currently work. If you take out a mortgage to buy your home and then decide to sell it later on, proceeds from the sale will go toward paying off your outstanding balance. You might then put any leftover funds toward the down payment on a new home loan.

When porting a mortgage, your original home loan transfers to the new property (assuming you meet the lender's eligibility requirements). If there's a difference in the home price, you can either cover it in cash or take out a new loan.

Example of a Portable Mortgage

Let's say you have a $250,000 mortgage with a 3.15% interest rate. You want to buy a new house for $300,000. You could keep your current home loan (and low rate) and finance the $50,000 difference at today's higher rates.

Learn more: Current Mortgage Rates: What Will You Pay?

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Benefits of Portable Mortgages

If they become available in the United States, portable mortgages could offer some unique advantages.

• Homeowners could hold onto low mortgage rates. Mortgage rates hit a record low in 2021, and many homeowners took advantage of that to secure an affordable monthly payment. As of the third quarter of 2025, 20% of outstanding mortgages had interest rates below 3%, according to FHFA data. A portable mortgage can allow a homeowner to buy another property without having to finance the entire purchase at today's higher rates.
• Buyers might avoid prepayment penalties. Some mortgages have prepayment penalties as high as 2% of the outstanding loan balance. A portable mortgage would allow a homeowner to maintain their loan and sidestep that fee.
• Housing inventory might go up. Homeowners who are able to keep their existing mortgages might be more motivated to sell and relocate. That, in turn, could put more homes on the market for potential buyers. Inventory is up around 20% from January 2025, according to the National Association of Realtors (NAR), but the market is still experiencing a housing shortage.

Downsides of Portable Mortgages

On the other end of the spectrum, portable mortgages could impact homebuyers and the housing market at large in negative ways.

• First-time homebuyers may be at a disadvantage. Housing affordability is already a challenge for many first-time homebuyers. Portable mortgages could nudge existing homeowners to sell—and flood the market, creating more competition that could edge out new buyers.
• Home prices could spike. It's speculation at this point, but having more buyers in the mix might lead to a seller's market. That could give sellers leverage to up their prices.
• Mortgage rates could go up. Companies often buy home loans from lenders before bundling and selling them to investors. These are called mortgage-backed securities. Some speculate that portable mortgages could disrupt this model and increase risk for investors, which could result in higher mortgage rates.

Will Portable Mortgages Come to the United States?

Portable mortgages are common in the United Kingdom and Canada, but only time will tell if they become available in the U.S. In November 2025, the director of the FHFA shared a social media post saying they were actively evaluating portable mortgages, but nothing more has been confirmed.

Alternatives to Portable Mortgages

While you cannot get a portable mortgage in the U.S. at this time, there are other potential ways to reduce your mortgage costs.

• Consider an assumable mortgage. With an assumable mortgage, a buyer could assume a seller's existing mortgage as their own. That would keep the interest rate, loan terms and monthly payment the same. Government-backed mortgages are assumable, but most conventional loans are not.
• Refinance your existing mortgage. If you're struggling to afford your housing payment, refinancing could help you secure a lower interest rate. You might also opt for a longer loan term, which would reduce your monthly payment.
• Eliminate mortgage insurance. Most lenders require you to carry mortgage insurance until you've acquired 20% equity in your home. If your home has increased in value, you can work with your lender to arrange an appraisal. The result could put you over the equity mark.
• Look into mortgage loan modification. Your lender might be willing to reduce your monthly payment if you can prove financial hardship. Loan modification could take the form of an extended loan term, a reduced interest rate or the ability to switch from an adjustable-rate mortgage to a fixed-rate mortgage.

The Bottom Line

Portable mortgages aren't yet available in the United States, but if they do become an option, they might make it more affordable to sell your home and purchase a new one. They could also pose a new hurdle for first-time buyers. We'll have to wait and see how things move forward, but at this point, the FHFA says it's something they're evaluating.