A lot of talk has been made about portable mortgages and the idea of taking that great mortgage rate with you to a new home. After all, that would open up a lot of inventory, seeing how homeowners don’t want to trade their low interest rates for today’s higher rates. So let’s talk about portable mortgages!
In Canada and a few European markets, this is called a portable mortgage, and it lets homeowners transfer their existing loan — including the interest rate — from one property to another. It sounds amazing, especially in a high-rate environment like the one we are in now.
But here in the United States, and especially in Placer County, portable mortgages are not available. It is not a lender preference. It is not a local rule. It is simply not part of our mortgage system.
Let me explain why.
What Is a Portable Mortgage?
A portable mortgage allows a homeowner to:
• Move into a new home
• Bring their old interest rate with them
• Transfer their remaining loan balance
• Avoid refinancing into potentially higher rates
It is a popular feature in places like Canada because it gives homeowners flexibility and protection against major rate changes.
Sounds dreamy, right?
Unfortunately, it is not something American lenders offer.
Why Portable Mortgages Don’t Exist in Placer County or Anywhere in the U.S.
There are a few key reasons:
1. The U.S. Mortgage System Is Built on Loan Sales, Not Portability
Most American mortgages are sold to:
• Fannie Mae
• Freddie Mac
• FHA
• VA
• Institutional mortgage-backed securities investors
Once your mortgage is sold into that system, it becomes part of a large financial pool.
Because of that, your mortgage is no longer a “personal contract” the lender can modify, transfer, or move to a different property.
It is locked into a long-term investment.
2. Appraisal and Collateral Rules Don’t Allow Transfers
In the U.S., mortgages are tied to a specific property’s value and risk profile.
If you move:
• The new home has a different value
• Different risk
• Different market conditions
• Different county requirements
• Different hazard insurance requirements
That means the loan cannot simply “follow you.”
A new property requires a new underwriting process.
3. Mortgage Rates Are Tied to the Market, Not the Borrower
In countries with portable loans, the interest rate is tied to you as the borrower.
In the U.S., the rate is tied to:
• The loan product
• The market
• Bond yields
• Lender pricing policies
This system does not allow rates to travel from home to home.
4. Investors Don’t Allow It
Even if a lender wanted to offer mortgage portability, investors who buy and insure American mortgages prohibit it.
Fannie, Freddie, FHA, VA, USDA — none of them allow portable terms.
So even if a lender advertised it, they could not legally follow through.
Why This Matters for Placer County Homeowners
With interest rates higher than they were in 2020–2022, many homeowners are trying to figure out the smartest way to move without losing their low rate.
Here are the realities:
1. You can keep your low rate by keeping the home as a rental.
This is often a strong option in Rocklin, Lincoln, Roseville, and Loomis due to high rental demand.
2. You cannot transfer your rate to your next home.
The new house will require a new loan at current market rates.
3. Sellers who bought at 2.5–3.5 percent are staying put longer.
This contributes to low inventory across Placer County, which supports strong home prices even when rates rise.
4. Buyers waiting for rates to drop are competing with everyone else waiting for the same thing.
When rates fall, competition will spike.
This is why some buyers choose to buy now and refinance later.
So What Should You Do If You Want to Move But Don’t Want to Lose Your Rate?
Here are options that work in our market:
• Rent out your current home instead of selling it
Keep your low mortgage, let tenants cover the payment, and build long-term equity.
• Use a 2-1 buydown or rate buydown on the new purchase
Many Placer County builders and sellers are offering credits right now.
• Combine equity from your current home with a larger down payment
A bigger down payment reduces your interest costs and monthly payment.
• Time your move strategically
Even small dips in rates can make a big difference.
• Let me run an equity and payment analysis
I can show you:
• What your current rate is saving you
• What your new payment would be
• Whether renting or selling makes more sense
• The long-term financial impact of each option
Every family’s situation is different, and there is no one-size-fits-all answer.
Bottom Line
Portable mortgages sound great, but they simply are not part of the U.S. lending system.
Here in Placer County, your mortgage is tied to your current home and cannot move with you.
But you do have options, and some of them may help you keep your low interest rate while still moving into the home you want next.
If you would like a personalized strategy session, I am happy to help you look at your numbers, your timing, and your best path forward.
Just reach out and we will create a plan that works for your family.
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