September 17 2026
If you bought or refinanced a home when rates were sitting at 3% or 4%, but would like to move, you already know the math. With current mortgage rates hovering near 7%, you’d likely more than double your current mortgage expenses.
That single fact has kept a number of homeowners in place, even when their current home no longer fits their life. We call it the “locked in” or “golden handcuff” effect.
While about 20% of homeowners with mortgages have rates above 6%, according to a report published by Realtor.com, approximately 50% are below 4%, and another 17% are between 4% and 5%.
That’s a lot of handcuffs!
Meanwhile, life events that motivate home sales — job relocation, marriage, divorce, death, up sizing, and downsizing — continue to happen, leaving those who can’t afford to move feeling stuck.
Well, there’s a new bill in Congress that may change all that. It’s called the MOVE Act, and if passed, would make conventional mortgages “portable” — letting you carry your existing rate, term, and balance to a new property instead of starting over.
What Is a “Portable Mortgage”?
A portable mortgage lets a homeowner transfer their existing interest rate, term, and balance to a new property instead of paying off the loan and starting a new one.
Right now, a mortgage is tied to a specific piece of property. When you sell your home, the loan must be paid off in full at closing. If you buy another house, you start from scratch, applying for a brand-new mortgage at whatever rates are available.
With a portable mortgage, instead of closing out and paying off the loan, it simply gets swapped from the old house to the new one, keeping the rate and other terms.
What the MOVE Act Actually Does
The bill would require Fannie Mae and Freddie Mac — the two entities that buy the vast majority of mortgages from lenders and resell them to investors — to start purchasing and securitizing portable mortgages. That’s important because lenders don’t want to make, and investors don’t want to buy, loan products they can’t sell.
Specifics from the bill text:
- Fannie Mae and Freddie Mac would have 180 days after the law takes effect to begin purchasing and securitizing qualifying portable mortgages.
- Homeowners would need to complete the move to a new property within 90 days of selling the original home.
- The bill covers conventional mortgages purchased by Fannie Mae and Freddie Mac. FHA, VA, and USDA loans aren’t part of this bill.
Why This Could Be a Big Deal
- It could free up housing inventory. Fifty-eight percent of would-be sellers say they’d move if rates were lower.
- It protects equity you’ve already built. You wouldn’t be punished because your needs changed.
One of the Biggest Questions
This is just the beginning. The actual bill is just a few paragraphs. It does not yet address loan-to-value. If your existing mortgage is $200k, and you’re buying a $400k house, how do you finance the difference?
In countries where portable mortgages exist (Canada, UK), lenders blend the old rate with current rates for the extra balance. Will that happen here?
There are lots of other details to be worked out as well.
Is the MOVE Act Law Yet?
No. As of now, the MOVE Act is a proposed bill, not law. Before you start planning a move around a portable mortgage, keep in mind there are several steps before it could go to Congress for a vote, and no timeline for when — or even if — that will happen.
What Homeowners Should Do Right Now
If you’re sitting on a low-rate mortgage and have been telling yourself you’re “stuck” — consider yourself lucky. You aren’t facing those 7% rates.
Hold out as long as you can.
A few years ago, there was an article about a divorcing couple who agreed to stay in the home, in separate rooms, rather than sell and go face the market. The story goes that they eventually sold anyway.
That’s a good point because, as mentioned earlier, the life events that cause people to move are still happening.
I have sold homes to a number of buyers who moved here for jobs. The old interest rates were hard to part with, but the desire for the new job in a new city was greater than the desire to keep the old rate.
FAQ: The MOVE Act and Portable Mortgages
Is the MOVE Act law?
Not yet. It is a proposed bill in Congress with no confirmed vote date.
What loans does the MOVE Act cover?
Conventional mortgages purchased by Fannie Mae and Freddie Mac. FHA, VA, and USDA loans are not included.
How long would homeowners have to complete a move?
Under the bill as written, homeowners would need to complete their move to a new property within 90 days of selling the original home.
What happens if the new home costs more than the old mortgage balance?
The bill doesn’t yet specify. In countries with existing portable mortgage systems, like Canada and the UK, lenders typically blend the old rate with current rates for the additional amount borrowed.