How to Keep Your Low Mortgage Rate When You Move
Imagine having a great three percent mortgage rate and feeling stuck because moving means jumping into today’s much higher rates. Many homeowners across Orange County are in this exact situation. Prices have changed, rates have climbed, and the idea of giving up a low fixed rate makes moving feel impossible. But there is a strategy that could change everything.
The Trump administration is looking to expand a little known mortgage tool that could make homeownership far more affordable. This comes right after the proposal for tax free home sales on primary residences, which would reshape the market for both buyers and sellers. Now there is another idea gaining attention, one that could help millions keep their low interest rates even after moving.
Hi, it’s Christopher and Broox Mahr with MMG Real Estate Advisors, your local Orange County Realtors bringing you strategies most people never hear about.
What Is Mortgage Porting?
Mortgage porting is a feature that allows you to transfer your existing mortgage to a new property. Think of it as packing up your belongings when you move, except you also pack up your mortgage rate and bring it with you. You keep the same lender, the same terms, and the same low interest rate. You simply apply that mortgage to your next home instead of starting over at today’s higher rates.
A Real Life Example of Porting
Imagine you purchased your home for six hundred thousand dollars at a three and a half percent fixed rate. Your monthly payment for principal and interest comes out to about twenty seven hundred dollars. Now you want to upgrade to a nine hundred thousand dollar home. At today’s rates near seven percent, that same mortgage could cost around five thousand dollars a month. That is a difference of more than two thousand dollars every month, or roughly twenty five thousand dollars a year.
With a portable mortgage, you carry the three and a half percent rate over to the new home. If you need a larger loan, your lender adds a smaller top up portion at today’s higher rate. This creates a blended rate that is much lower than starting from scratch.
When Mortgage Porting Makes Sense
Porting is a smart option when you have a great fixed rate around three to four percent, plan to stay with your current lender, are buying and selling within thirty to one hundred twenty days, and want to avoid expensive mortgage penalties. Some borrowers face penalties that reach tens of thousands of dollars. Porting can help you skip those costs entirely.
Important Limitations to Know
Not every mortgage is portable. Some promotional rates and certain variable products may not qualify. Even when porting is allowed, your lender will still need to requalify you and approve the property you are moving into. If you are purchasing a more expensive home, the lender may offer a blend and extend option, combining your original low rate with the new top up portion. Although this may increase your payment slightly, it is still far less expensive than getting a new loan at current rates.
Why Mortgage Porting Matters Now
In today’s market, mortgage porting is a powerful strategy for homeowners who feel stuck. Many people want more space, a new city, or a different lifestyle, but don’t want to give up their low rate. Porting gives you flexibility to move without losing what may be the best financial advantage you have.
It is a strategy that more homeowners should understand, especially as rates remain higher than the lows seen just a few years ago.
The Bottom Line
Mortgage porting can help you move, upgrade, or relocate while keeping your low interest rate intact. Before making a move, talk to your lender or mortgage broker and ask whether your mortgage is portable. If it is, that low rate could follow you to your next home and save you thousands every year.
If you are planning to buy or sell in Orange County, reach out anytime. MMG Real Estate Advisors is here to guide you with real strategy and real facts, never fear based hype.
