What If You Could Take Your 3% Mortgage Rate to Your Next Home?

How the proposed MOVE Act could change the way homeowners think about selling, moving and mortgage rates

For many homeowners, moving isn't just a real estate decision anymore. It's a mortgage decision. Imagine you've owned your home for several years and have a mortgage rate around 3% or 4%. Your family has grown, your needs have changed, or you've simply found a home that fits your lifestyle better. Then you look at the financing available for your next home.

The question becomes:

“Can I really afford to give up my current mortgage rate?”

That's the heart of what is commonly called the mortgage rate lock-in effect. And it's one reason a newly introduced piece of federal legislation is getting attention in the real estate and mortgage industries. It's called the Making Ownership Viable for Everyone Act, or the MOVE Act (H.R. 10028).

If enacted, the proposal could create a framework for certain conventional mortgages to become portable, meaning a homeowner could potentially transfer the mortgage's interest rate, terms and remaining balance to a replacement property.

But there is an important distinction:

The MOVE Act is proposed legislation. It is not currently law, and portable conventional mortgages are not an available benefit simply because H.R. 10028 has been introduced. GGovInfo+1

Why Mortgage Rate Lock-In Matters

The numbers help explain why this conversation matters.

According to 2026 Q1 data from the Federal Housing Finance Agency's National Mortgage Database, 49.9% of outstanding mortgages had interest rates of 4% or lower. Nearly 20% were below 3%. For a homeowner with a mortgage in that range, selling can mean giving up relatively inexpensive financing and taking out a new mortgage at a considerably higher rate.

That can make a move financially difficult, even when the homeowner has a legitimate reason to move.

Maybe the house is too small.

Maybe the kids have grown.

Maybe the homeowner needs to relocate for work.

Or maybe they simply want a different home.

The challenge is that the cost of replacing a low-rate mortgage can make staying put seem more attractive. That's the lock-in effect.

So, What Is a Portable Mortgage?

A portable mortgage is designed around a simple concept:

The mortgage moves with the borrower instead of remaining tied to the original property.

Under the proposal outlined in H.R. 10028, a qualifying conventional mortgage could allow the borrower to transfer the interest rate, loan terms and remaining balanceto a new property, subject to the mortgagee's permission and the requirements of the program.

In practical terms, think about it this way:

Today

Your mortgage → Your current home

You sell the home → the existing mortgage is generally paid off → you obtain financing for the next home.

Under the proposed portable-mortgage structure

Your mortgage → moves with you → your replacement home

The idea is that your existing mortgage's rate, terms and balance could transfer to the new property.

That's a significant difference. However, portability would not mean that the entire purchase price of a more expensive home is automatically financed at your old rate. The proposed legislation addresses transferring the existing mortgage; the details of financing any additional amount would still matter.

Those practical lending questions would be important if a portable-mortgage program were ultimately implemented.

What Does the MOVE Act Actually Propose?

H.R. 10028 is relatively short, but its potential implications are significant.

The bill would require Fannie Mae and Freddie Mac to begin purchasing and securitizing qualifying conventional mortgages that allow a borrower to transfer the mortgage's interest rate, terms and balance to a new property. The bill specifies that the transfer would occur within 90 days of selling the original property. It would give the two housing-finance enterprises up to 180 days after enactment to begin purchasing and securitizing these mortgages.

In other words, the legislation is intended to address the secondary-market infrastructure behind portable mortgages, not simply create a new loan product overnight.

And that distinction matters.

What Could This Mean for Homeowners?

If a portable-mortgage framework eventually became available, there are several potential implications worth watching.

1. More flexibility for homeowners

A homeowner who has been reluctant to move because of a low mortgage rate could have another financing option to consider.

Instead of automatically leaving the old rate behind, the homeowner could potentially transfer qualifying mortgage terms to a replacement property.

2. More movement in the housing market

One of the broader questions surrounding portability is whether reducing the financial penalty associated with giving up a low mortgage rate could encourage more homeowners to sell. More sellers could mean more existing homes coming onto the market.

Whether that actually happens and to what extent would depend on eligibility, lender participation, implementation details and the economics of individual moves. T

3. A different way to think about your mortgage

For years, homeowners have generally thought about their mortgage as being connected to a specific property. Portable mortgages flip that concept around:

What if the financing could follow the borrower instead? That's the fundamental idea behind the proposal.

Portable vs. Assumable: They're Not the Same

These two terms are easy to confuse.

Portable mortgage:
The borrower moves the mortgage to a replacement property.

Assumable mortgage:
A new buyer takes over the seller's mortgage on the existing property, subject to the applicable loan rules.

So the easiest way to remember it is:

Portable = the loan moves with you.
Assumable = the loan stays with the property and may transfer to the buyer.

The MOVE Act concerns portability, not mortgage assumption.

Is the MOVE Act Law Yet?

No.

H.R. 10028 was introduced in the U.S. House of Representatives on August 3, 2026, and referred to the House Committee on Financial Services. As of September 16, 2026, that is the current legislative status reflected in the official government record. That means homeowners should not make a buying or selling decision based on an assumption that they can currently take their mortgage rate with them.

The proposal could change as it moves through the legislative process, and additional rules would be necessary before portable mortgages could become an operational product. For now, it's something to watch, not something to count on.

What Should Homeowners Do Right Now?

If you're sitting on a 3%, 3.5% or 4% mortgage and wondering whether you should move, you don't necessarily need to wait for legislation to make a decision.

Instead, look at your situation as a whole.

Consider:

• How much equity do you have?

• What would your current home likely sell for?

• What would your next home cost?

• How much would you actually need to finance?

• What would your monthly payment look like?

• Are there ways to structure the purchase differently?

• Does moving solve an important lifestyle or financial need?

• What financing options are available to you today?

And most importantly:

Don't make a real estate decision based on the headline alone.

The MOVE Act is an interesting development, but your personal numbers mattermuch more than the legislation's headline.

The Bottom Line

The idea behind the MOVE Act is straightforward:

What if homeowners didn't necessarily have to choose between moving and giving up a low mortgage rate?

H.R. 10028 proposes a framework that could allow qualifying conventional mortgages to become portable, potentially allowing borrowers to transfer their mortgage rate, terms and remaining balance to a replacement property within a specified window. Whether that proposal becomes law and what the eventual rules would looklike remains to be determined. But for homeowners who have been sitting on the sidelines because of a low mortgage rate, this is a development worth watching.

If you're thinking about buying, selling or moving in Northeast Florida, let's talk about your options based on market opportunities available today and not on what might happen tomorrow.

At Zumot Realty, I can help you look at the real estate side of the equation while connecting you with knowledgeable local lending professionals who can evaluate your financing options and help you understand what may make sense for your situation.

Thinking about your next move?

Let's Get You Home.

Zumot Realty
Helping homeowners make informed real estate decisions.