Love Your Low Mortgage Rate? Here’s How You May Keep It When You Move

If you were able to land a mortgage rate of 4% or less a few years ago, you may be reluctant to give it up now that rates are topping 7%. But what if you want or need to sell your home and buy another one?  

That’s where mortgage porting might come in. While this practice is relatively common in Canada and the U.K., it is more rare in the U.S. Still, there is no harm in asking your current lender. If it doesn’t offer porting, it may be able to suggest other ways to lower your rate on a new mortgage.

How Mortgage Porting Works

Mortgage porting allows you to finance a new home using your current mortgage and retain your existing rate. You will need to reapply for the mortgage and qualify just as you did initially. So if your financial situation has changed for the worse in the meantime, that may be difficult.

In porting a mortgage, you use the proceeds from selling your current home to pay off your remaining loan balance. Then the lender will essentially re-lend you the money for your new home at your existing rate.

If the new home requires a larger loan amount than your old one, the lender may offer you an additional loan (at a different, and likely higher, rate) to cover the difference.

Alternatives to Mortgage Porting

As mentioned, if you’re a U.S. homeowner your lender most likely doesn’t offer the option of porting your mortgage. However, there may be other ways to obtain a more attractive mortgage rate. Among them:

Take over the seller’s mortgage: If the seller of the home you’re buying has an assumable mortgage with a good rate, that could be more advantageous than taking out a new mortgage at today’s rates. 

Opt for a shorter loan term:  In mid-May of 2025, for example, 30-year fixed-rate mortgages were charging an average of 7.11%, according to Investopedia data, while 15-year fixed mortgages averaged 6.11%. Your monthly payments will be higher with a shorter term, but you’ll not only save on interest month after month but over the long term as well.

Check out an adjustable-rate mortgage (ARM): ARMs sometimes have lower interest rates than fixed-rate ones, especially if they come with an introductory teaser rate for a period of time. This isn’t always the case, however. In mid-May, for example, ARMs were charging rates slightly over 7.5%, compared with 7.11% on a 30-year fixed, again according to Investopedia data.

Put more money down: A larger down payment will often get you a somewhat lower interest rate. Plus, because you’re borrowing less money you’ll pay less interest overall.

Pay some points: Points are a form of prepaid interest, with each point equaling 1% of your loan amount. In return for points, lenders will typically offer you a lower monthly interest rate. For example, if the lender provides a reduction of 0.25% per point, two points would reduce your rate by 0.50%. 

The Bottom Line

Mortgage porting isn’t widely available in the U.S., at least at this point. But there are some other ways to secure a mortgage at less than the going rate. In addition to the options described above, be sure to shop around, because rates can vary significantly from one lender to another.