Portable Mortgages: A Band-Aid, Not a Solution to Today’s Housing Crisis

A Creative Idea That Misses the Bigger Problem

There’s buzz right now about a federal proposal to allow “portable mortgages” — the idea being that homeowners could carry their current low mortgage rate to their next home instead of giving it up and starting over at a higher rate.

Sounds like a win, right?

Let’s be clear: yes, this could help move-up buyers finally consider a sale — especially those sitting on a 3–4% mortgage. But it does nothing to address the biggest issue we’re facing in today’s market: affordability.

Mortgage Rates Are Still High for First-Time Buyers

Today’s mortgage rates are hovering just over 6%, which is better than last year’s 7%+ peak — but still a huge hurdle for renters and first-time buyers trying to enter the market.

Home prices remain elevated. Down payment assistance is limited. And now we’re floating an idea that helps people who already own a home — but not those struggling to buy their first one?

That’s not progress. That’s patchwork.

Who Would Portable Mortgages Actually Help?

• 🔁 Move-up buyers: It could encourage existing homeowners to sell without giving up their great rate. That’s a good thing for inventory.
• 🏠 Repeat buyers: Someone downsizing, relocating, or trading up might benefit from this idea — if their lender allows it (which they don’t... yet).
• 🚫 First-time buyers: Completely left out of this equation. They still face high prices, limited supply, and no "portability" of anything.

My Honest Take as a Broker

As someone who helps both first-time buyers and move-up sellers every day, I love innovation — but this one feels like a Band-Aid on a broken bone.

The real solution to affordability isn’t just moving rates around for people who already own property. It’s making it possible for new buyers to enter the market:

• 🏡 More entry-level housing supply
• 💰 Expanded access to grants and down payment assistance
• 📉 Creative tools like seller-paid buydowns and assumable loans
• ⚖️ Transparent underwriting for those with stable income but less cash

Portable mortgages might make a headline. But they won’t make homeownership more accessible.

What You Can Do Instead — Right Now

Even in this market, there are options. Let’s talk about what works today:

• ✅ Temporary rate buydowns (that sellers can help pay for)
• ✅ VA loan assumptions (if eligible)
• ✅ Fast-track HELOCs to fund renovations or bridge a move
• ✅ Strategic timing + future refinancing when rates drop

You don’t need to wait for a government proposal to take action.

💬 Let’s Talk Strategy

If you're wondering whether to buy, sell, or tap your equity, let’s map out a game plan based on your actual numbers and options. I handle both loans and real estate, so you get one honest, strategic representative to get you into your new home.

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