The Benefits of Getting a Portable Mortgage

By John Salkowski

The JRS Realty Group, founded by high-producing Real Estate Broker & Author John Salkowski was built on the notion that the secret to achieving incredible goals and getting true results is to dominate real estate with a team approach.

Is your current mortgage rate the reason you’re not even considering selling? With rates climbing, most homeowners aren’t willing to walk away from what they locked in years ago. That hesitation is shaping the entire housing market right now.

Let’s talk about a proposed solution called the portable mortgage and why it could make a real difference for homeowners who feel stuck.

What a portable mortgage means. A portable mortgage is a proposed idea that would let you take your existing interest rate with you when you move. For example, when I bought my property in 2020, I secured a 2.5% rate. If I wanted to sell, this proposal would allow me to transfer that same interest rate to my new home.

Why this proposal exists. The portable mortgage is being discussed because it could help generate more inventory for buyers. Homeowners with low interest rates aren’t moving. If you have a 2.5% or 3% rate, you’re probably staying put. Many people are choosing renovations, new kitchens, and new bathrooms instead of selling.

If homeowners could take their low rates with them, they’d be more likely to move and create more inventory for others.

Who would benefit? This would benefit home sellers who already have a low interest rate. If someone is sitting on a 2.5%, 3.5%, or even 4% rate, they have no reason to trade it for a 6% rate. That’s why inventory is still low compared to past years. A portable mortgage would help those sellers finally make a move.

Who would not benefit? This wouldn’t help everyone. If you’re renting, you’d still get whatever the current interest rate is when you buy, 5.5%, 6%, or 6.5%. It also wouldn’t help someone who recently purchased a property with a 6% interest rate. The portable idea would only benefit those who already have a lower rate.

Why I support the proposed portable mortgage. I’m a big proponent of the portable mortgage. I also made a video about the proposed 50-year mortgage, and I wasn’t a fan of that idea. But I am a fan of the portable mortgage because many homeowners feel stuck. Trading a 2.5% rate for 6% doesn’t make sense. If this idea moves forward, it could be a game-changer for the real estate industry.

If you have questions or want more details on the proposed portable mortgage, reach out anytime at (610) 709-5147 or email john@jrsrealtygroup.com. I’m happy to provide the information you need and make the process easier whenever you’re ready.