Mortgage Portability 2026: Transfer Your Low Rate to a New Home
Keep your 3-4% mortgage rate when you move! Complete guide to portable mortgages, requirements, costs, and lenders. Save $50K+ vs getting a new loan at 6-7% rates.
📊 Mortgage Portability Quick Stats 2026
🏠 What Is Mortgage Portability?
Mortgage portability (also called "mortgage porting") allows you to transfer your existing mortgage—including your low interest rate—to a new property when you move.
Instead of paying off your current mortgage and getting a new one at today's higher rates, you simply "port" your existing loan to your new home. This is a GAME CHANGER in 2026 when rates are 6-7% but you have a 3-4% mortgage!
💡 Real Example: The Power of Portability
Sarah's Story: Locked in 3.25% rate in 2021 on $400K mortgage. In 2026, she wants to move to a bigger home.
- • Pay off 3.25% mortgage
- • Get new loan at 6.75%
- • Payment: $2,595/month
- • Total cost: $933,200
- • Transfer 3.25% mortgage
- • Keep same rate!
- • Payment: $1,741/month
- • Total cost: $626,760
Ready to Port Your Mortgage?
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Find Portable Mortgage Lenders →⚙️ How Mortgage Portability Works: 5-Step Process
Step 1: Check If Your Mortgage Is Portable
Not all mortgages are portable. Check your mortgage documents for a "portability clause" or contact your lender.
- Most portable: Credit union mortgages, some regional banks
- Sometimes portable: Conventional loans from major lenders
- Rarely portable: FHA, VA, USDA loans (use assumption instead)
Step 2: Notify Your Lender Early (60-90 Days Before)
Contact your lender as soon as you decide to move. Most lenders require 60-90 days notice to process portability.
What to ask:
- ✓ "Is my mortgage portable?"
- ✓ "What's the porting fee?"
- ✓ "Can I increase the loan amount?"
- ✓ "What documents do I need?"
Step 3: Get Pre-Approved for Portability
Your lender will re-qualify you based on your current financial situation. They'll check:
- Credit score (usually need 620+)
- Income verification (pay stubs, tax returns)
- Debt-to-income ratio (typically 43% max)
- New property appraisal
Step 4: Find Your New Home & Get Appraisal
Once you find a home, your lender will order an appraisal to ensure the property value supports the loan amount.
💡 Pro Tip:
If the new home costs MORE than your current mortgage balance, you can often "blend and extend" - add new funds at current rates while keeping your low rate on the original balance.
Step 5: Close on Both Properties (Timing Is Critical!)
The trickiest part: You must close on your new home BEFORE or ON THE SAME DAY as selling your old home. Most lenders require:
- Simultaneous closing: Sell old home and buy new home same day
- Bridge loan: Temporary loan to cover gap if closings don't align
- Portable mortgage fee: $500-$2,000 paid at closing
✅ Mortgage Portability Requirements 2026
📋 Qualification Checklist
Must maintain good credit since original loan
Perfect payment record required by most lenders
Total monthly debts ÷ gross income must be under 43%
2 years employment history, recent pay stubs, tax returns
Primary residence → primary residence (can't port to investment property)
Usually 30-90 days from notification to closing
Check If Your Mortgage Is Portable
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Get Pre-Qualified Now →💰 Mortgage Portability Costs & Fees 2026
| Fee Type | Typical Cost | Notes |
|---|---|---|
| Portability Fee | $500-$2,000 | One-time admin fee to transfer loan |
| Appraisal | $400-$800 | Required for new property |
| Title Insurance | $800-$2,000 | Protects new property title |
| Recording Fees | $50-$250 | County recording charges |
| Credit Report | $25-$50 | Lender pulls new credit |
| TOTAL COST | $1,775-$5,100 | vs $8K-$15K for new loan! |
💡 Cost Comparison: Portability vs New Loan
- • Portability fee: $500-$2K
- • Appraisal: $600
- • Title/recording: $1K
- • Total: ~$2,100-$3,600
- • Origination fee: $2K-$4K
- • Appraisal: $600
- • Title/recording: $2K
- • Other fees: $3K-$8K
- • Total: ~$8K-$15K
🏦 Lenders Offering Portable Mortgages 2026
Important: Not all lenders offer mortgage portability. Here are the most common types that DO:
1. Credit Unions (Most Likely)
Credit unions are the BEST bet for portable mortgages. Many offer portability as a member benefit.
- Navy Federal Credit Union: Offers portability on most mortgages
- PenFed Credit Union: Portable mortgages available
- Local credit unions: Check with your local CU - many offer this
Typical terms: $500-$1,000 porting fee, must maintain membership
2. Regional Banks
Some regional banks offer portability, especially if they hold your mortgage in-house (not sold to Fannie/Freddie).
- TD Bank: Offers portable mortgages in select states
- Fifth Third Bank: Portability available on some products
- Community banks: Often more flexible than big banks
3. Portfolio Lenders
Lenders who keep loans on their books (don't sell to secondary market) are most likely to offer portability.
How to find them: Ask lenders "Do you keep loans in-house or sell them?" Portfolio lenders = more flexibility.
❌ Lenders That DON'T Offer Portability:
- Rocket Mortgage: No portability option
- Better.com: No portability
- Most online lenders: Typically don't offer portability
- FHA/VA/USDA loans: Not portable (use assumption instead)
Find Lenders With Portable Mortgages
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Compare Lenders Now →🔄 Portability vs Assumption: What's the Difference?
| Feature | Portability | Assumption |
|---|---|---|
| Who Uses It? | YOU (original borrower) | NEW BUYER |
| What Happens? | Transfer YOUR loan to new home | Buyer takes over YOUR loan |
| Rate Benefit? | ✅ Keep your low rate | ✅ Buyer gets your low rate |
| Loan Types | Conventional (some lenders) | FHA, VA, USDA, some conventional |
| Typical Fee | $500-$2,000 | $500-$5,000 |
| Best For | Moving to new home | Selling your home |
💡 When to Use Each:
- ✓ You're moving to a new home
- ✓ You want to keep your low rate
- ✓ You have a conventional loan
- ✓ Your lender offers portability
- ✓ You're selling your home
- ✓ You have FHA/VA/USDA loan
- ✓ Buyer wants your low rate
- ✓ You want to attract buyers
⚖️ Mortgage Portability: Pros & Cons
✅ PROS
- ✓Keep Your Low Rate
Transfer 3-4% rate instead of getting 6-7% new loan
- ✓Save $50K+ Over Life of Loan
Massive interest savings vs new mortgage
- ✓Lower Closing Costs
$2K-$4K vs $8K-$15K for new loan
- ✓Faster Process
30-45 days vs 45-60 days for new mortgage
- ✓No Prepayment Penalty
Most portable mortgages waive penalties
❌ CONS
- ✗Limited Lender Options
Only ~23% of lenders offer portability
- ✗Strict Timing Requirements
Must close on new home before/same day as selling old
- ✗Re-Qualification Required
Must meet current lending standards
- ✗Property Type Restrictions
Can't port to investment/vacation property
- ✗Blend-and-Extend Complexity
If new home costs more, math gets complicated
❓ Mortgage Portability FAQ 2026
Can I port my FHA or VA loan?
No, FHA and VA loans are NOT portable. However, they ARE assumable, which means a buyer can take over your loan when you sell. If you want to keep your low rate when moving, you'll need to use the assumption process to sell your current home, then get a new FHA/VA loan for your next home (or use a conventional portable mortgage if you qualify).
What if my new home costs more than my current mortgage balance?
You can use "blend and extend" - your lender will:
- Keep your low rate on the original balance
- Add new funds at current rates for the difference
- Blend the two rates into one payment
Example: $300K at 3.5% + $100K at 6.5% = $400K blended at ~4.25% (still better than 6.5% new loan!)
How long does mortgage portability take?
Typical timeline: 30-45 days from notification to closing. Here's the breakdown:
- Week 1-2: Notify lender, get pre-approved for portability
- Week 2-3: Find new home, make offer
- Week 3-4: Appraisal, title work, underwriting
- Week 4-6: Final approval, coordinate closings
Can I port my mortgage to an investment property?
No, most lenders require the new property to be your primary residence. Portability is designed to help homeowners move, not investors. If you want to convert to an investment property, you'll need to:
- Pay off your current mortgage
- Get a new investment property loan (higher rates)
- Or keep your current home as rental and get new primary residence loan
What happens if I can't close on time?
You have 3 options:
- Bridge loan: Temporary loan to cover gap between closings ($5K-$15K cost)
- Extend closing date: Negotiate with buyer/seller to align dates
- Lose portability: If you miss the window, you'll need a new mortgage at current rates
Is mortgage portability worth it in 2026?
YES, if you have a rate below 5%! Here's the math:
Scenario: $400K mortgage
- • Your rate: 3.5% (payment: $1,796/mo)
- • New rate: 6.5% (payment: $2,528/mo)
- • Monthly savings: $732
- • 30-year savings: $263,520
- • Portability cost: ~$3,000
- • NET SAVINGS: $260,520
Bottom line: If your rate is 2%+ below current rates, portability is a NO-BRAINER!
Ready to Port Your Mortgage & Save $50K+?
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🎯 Key Takeaways: Mortgage Portability 2026
Keep 3-4% rate instead of getting 6-7% new loan
Massive interest savings vs new mortgage
vs $8K-$15K for new loan
23% of lenders have portability option
620+ credit, 43% DTI, stable employment
Coordinate both closings carefully
Use assumption instead for government loans
Add new funds at current rates if needed