President Trump’s portable mortgage push may let you keep your 3% rate — experts say it might backfire. What to do now

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President Donald Trump sits in the oval office, looking forward pensively while wearing a yellow tie.

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Americans thinking about selling their homes may decide to stay put when they look at today’s interest rates, especially if they’re currently locked in at a low rate.

But the Trump administration appears to be hoping to change that.

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William Pulte, director of the Federal Housing Finance Agency (FHFA), recently posted on X that the agency is “actively evaluating” portable mortgages. His statement came shortly after Trump said that he was considering introducing 50-year mortgages for borrowers.

The push didn’t stop there. In early January, Trump also announced that Freddie Mac and Fannie Mae would buy $200 billion in mortgage bonds — a move aimed at easing mortgage rates. It had a short-term impact, with average 30-year rates briefly dipping below 6% (1).

So, what exactly is a portable mortgage, and what could it mean for American homeowners and people looking to break into the market?

What is a portable mortgage?

A portable mortgage lets you transfer your mortgage and your existing rate to a new home instead of taking out a new loan when you move.

But what happens if the place you buy costs more than your current home? According to CNN, you would need to either cover the difference in cash or take out a separate loan for it (2).

One reason a portable mortgage could be appealins it thanks to millions of Americans sitting on low rates. Redfin, using FHFA data, found that 52.5% of homeowners have a mortgage rate below 4% (3). The current average 30-year fixed rate is 6.36% (4).

These high rates may be keeping Americans, especially post-pandemic homeowners, from moving.

Susan Wachter, a professor of real estate at the Wharton School of the University of Pennsylvania, told CNN that a portable mortgage could nudge homeowners who have been staying put to sell, opening the door for new buyers.

Critics question the move

Portable mortgages are only a proposal at this point, and the administration has not rolled out any formal plans, but critics are already raising concerns.

The New York Times reports that portable mortgages exist in other countries for shorter-term loans, but introducing them in the U.S. could shake up the economy. U.S. mortgages are bundled and sold as investments called mortgage-backed securities (5).

CNN noted that portable mortgages could “disrupt the engine powering the U.S. housing market,” because mortgage-backed securities give banks the cash they need to issue new loans and keep the “mortgage market flowing.”

Experts also questioned whether portable mortgages would improve affordability and supply.

“If the market opens up and people can carry those low rates with them, demand jumps overnight. Prices move higher. No question about it,” Kevin Thompson, CEO of 9i Capital Group, told Newsweek (6). “This does nothing to solve affordability.”

Thompson also doubted it would fix the supply crunch.

Jake Krimmel, a senior economist at Realtor.com, said portable mortgages might help with supply issues, “in theory.” He noted that the gap between borrower’s current rate and the market rate has been a big drag on mobility, so rate portability might unlock some activity and free up inventory (7).

However, Krimmel said the so-called “lock-in effect” accounts for only about half of the recent drop in mobility. He also pointed out that portable mortgages would mostly help homeowners who already have low rates.

First-time buyers and people without mortgages wouldn’t benefit.

What to do if you’re locked in but want to move

Portable mortgages and 50-year mortgages are still just proposals, and it’s unclear whether they will ever be implemented. If you want to move but hate the idea of giving up a low interest rate, here are a few options:

Assumable mortgages: An assumable mortgage lets you take over the seller’s mortgage and their rate. According to U.S. Bank, most government-backed loans from the Federal Housing Administration (FHA), Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) are assumable. Conventional loans typically are not (8).
Negotiate a rate buydown: A mortgage-rate buydown can lower your interest rate temporarily or for the full loan term. This involves buying mortgage points, which CNBC describes as prepaid interest (9). It can save you money depending on your loan type and how long you plan to live in your home.
Shorter-term mortgages: If you can afford higher monthly payments, a shorter loan term usually comes with a lower rate..
Sit tight: You can wait and see whether rates improve, though some experts warn against trying to time the market.

Of course, buyers who can pay all cash can avoid the mortgage market entirely.

If you need to move and can’t wait for rates to fall or for new policies to take shape, a higher rate might simply be the tradeoff. Sometimes you need to prioritize space for a growing family, a promising job offer or the chance to move from a high-cost area to a more affordable one at a better price.

Negotiate a better rate

With the average rate on 30-year fixed mortgages still above 6%, it’s no surprise that most people feel they’re trapped in golden handcuffs.

But there are other ways to lower your rate. For instance, you could save an average of $80,024 over the life of a mortgage by shopping around and choosing the best rate available, according to LendingTree (10).

Platforms like Mortgage Research Center can help you search for rates offered by reputed lenders near you for free — all from the comfort of your home.

All you have to do is answer some basic questions about your property and your finances (including your annual income and credit score), and Mortgage Research Center will compile a list of the best offers from lenders near you.

You can also get connected with custom mortgage offers from lenders, and set up a free introductory call with no obligation to hire.

Lower your hidden costs

Mortgage payments might be getting a little easier to manage, but another, often overlooked expense is quietly stretching household budgets.

Homeowners’ insurance premiums are surging, with the average monthly cost for a single-family home hitting a record $201 last year, according to ICE Mortgage Technology — up 72% since 2019. For comparison, premiums rose just 12.3% between 2014 and 2019 (11).

But there are ways to save. On average, you could save up to $482 by shopping around for home insurance and choosing the most affordable option.

That process is now easier than ever with OfficialHomeInsurance.com.

You can compare rates and features on home insurance policies from top providers near you for free in under two minutes through OfficialHomeInsurance.

Here’s how it works: Answer a few basic questions about yourself and your home, and OfficialHomeInsurance will comb through its database of over 200 insurers to display the lowest rates available.

You’ll be able to review all your offers in one place, and quickly find the coverage you need for the lowest possible cost.

Make your home work harder for you

With many homeowners locked into ultra-low mortgage rates, selling and starting over might not be the most financially prudent decision. But while you might not want to move, you can still make your home work harder for you.

With a HELOC, you can tap your home equity and access cash — usually at rates below credit cards and personal loans — without giving up your existing mortgage.

If this seems like a good idea, you can compare low HELOC rates in minutes with Figure.

Unlike traditional HELOCs, Figure gives you the full approved amount upfront, so it works more like a quick home equity loan with HELOC-style flexibility. With this in hand, you can use it to help cover surprise expenses or supplement your retirement income.

The best part? The application is 100% online — no need to wait for an in-person appraisal or branch visits.

Get expert advice for free

With many homeowners locked into ultra-low “golden handcuff” mortgage rates, moving isn’t just a lifestyle decision — it’s a financial trade-off. Whether you’re thinking about downsizing or upgrading, the numbers will hinge on your income, spending habits, and long-term goals.

Before making a move — financially or otherwise — it may be worth speaking with a financial advisor. They can help you assess where you stand today and map out a plan that improves your finances — without taking on more debt than you can handle.

You can find vetted FINRA/SEC registered advisors near you for free with Advisor.com. Their network of experts only includes fiduciaries, which means they are required by law to act in your best interest.

All you have to do is answer a few questions about your financial situation, and Advisor.com will pair you with an expert.

From there, you can set up a free introductory call with no obligation to hire to test the waters, and see if they’re a good fit for you.

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