Can Portable Mortgages Fix the Golden Handcuff Problem in U.S. Housing?

In this episode, Tim Jones (Foreclosure.com) sits down with Christopher Tapia at Compass HQ in Boca Raton, Florida, to break down portable mortgages and how they differ from an assumable mortgage. Learn how mortgage portability could help homeowners keep their low interest rate, escape “golden handcuffs,” and move without losing their current loan terms. We also discuss how portable mortgages could impact US housing, real estate sales, and even reduce foreclosures in 2026. If you’re interested in mortgage rates, home loans, real estate investing, and the future of mortgages, this episode is a must-watch

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Transcript

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could portable mortgages help reduce foreclosures by allowing distressed homeowners to transfer their low rate to a new more affordable home absolutely a portable mortgage will absolutely cut the foreclosure you know that they have or more because that borrower will be able to port their mortgage they currently have into the new property and save them tens of thousands in closing costs saves them so much as far as keeping the same rate they currently have right now cause I guarantee you all these borrowers today that purchase a property 5 6 7 years ago they have rates of 2 3% right now why in the world would I want to go and sell my property to them to go get a 7% interest rate yeah hello everyone I'm Tim Jones with foreclosure.com Today I'm joined with Christopher Tapia here at the compass headquarters in Boca Raton Florida Christopher thank you so much for having us here today thank you for coming very excited for you to be here today awesome well I'm excited to talk about this topic today about portable mortgages I know it's something that we don't have here in the United States right now but I believe it will be coming soon so we'll love to start sharing the world about it cause let's hope that it does come in 2026 OK cool cool yeah let's let's dive in so let's do it what is a portable mortgage and how does it differ from an assumable mortgage so portable mortgages is a type of a home loan that allows the borrower to be able to use the existing mortgage that they have and literally transfer that mortgage into the new property so you'll be able to transfer the existing mortgage to a new property and as they sell their current property so that's gonna benefit in so many different ways you stay with the same rate basically almost the same payment unless the property is worth more you have to come out of difference for it but the whole benefit about it is that you'll be able to stay with the same term same program and be able to afford it and be able to again move to the next destination that you're looking to move to okay yeah um so why hasn't the US widely adopted portable mortgages yet and um what would it need to change for them to become mainstream great question I mean I don't want to really bad mouth what's happening but I believe that the reason why portable mortgages are not really here in the US is because they're not really profitable for lenders hmm uh you know you know because you're as a borrower having a current mortgage and that's looking to purchase another property here in the US you would have to sell the property and then purchase a new loan in order to purchase another property and different places like in Europe or in the UK they use the existing mortgage that they have and literally poured it into the new current property that they're gonna be looking to purchase so literally they just transfers the existing mortgage into the new mortgage and they would have to come out the difference to pay the difference if the property is worth more than the current one they have okay so so how would a portable mortgage impact people stuck in like golden handcuffs or low interest rates who can't afford to move right now that's exactly what this is all about you'll be able to to port your own mortgage into the new property that they're gonna be purchasing but unfortunately we don't have that program here right now in the United States but I have heard that they're in talks about because if we do if we are able to do a portable mortgage here in the United States it's gonna save probably 30 or 40% of individuals that have mortgages today and be able to finally be able to move to the new the destination that they want to move to yeah because right now they're stuck yeah they can't go anywhere because rates are literally double even triple of what they currently have right now yeah I've heard that a lot either people want to downsize or upsized they're not moving because absolutely they don't have that they don't want to lose their interest rates yep so they have you know golden handcuffs so the most the benefits about this property that the portable mortgage is that has you the interest rate preservation uh the cost savings uh the simplicity of the whole aspect of it uh because it's it simplifies the financing process by just uh by moving the new home uh moving the mortgage to a new home as as easy as that OK so it's really is a benefit that's why it's so uh it's it's so amazing uh to have this program but unfortunately we don't have it here in the United States right now but we're gonna get it we're eventually gonna get it OK OK I like your confidence so portable mortgages help reduce foreclosures by allowing distressed homeowners to transfer their low rate to a new more affordable home absolutely a portable mortgage will absolutely affect uh will will will cut the foreclosure you know the data by by half or more because that borrower will be able to port their mortgage they currently have into the new property and save them thousands and closing costs saves them so much as far as keeping the same rate that we currently are they currently have right now cause I guarantee you all these borrowers today that purchase a property 5 six 7 years ago they have rates of 2 3% right now why in the world would I wanna go and sell my property to them to go get a 7% interest rate yeah so that's why most people are stuck at home until they get a chance to move once if if this portable mortgage comes into play a lot of borrowers a lot of buyers a lot of sellers would definitely jump on that okay um so what would this mean for investors would portability be investor friendly um if the investor has a property on his on their own and they they consider that as their primary residence for example it could be an investor owning their own primary residence got it and they could transfer that property to their new to the new home okay but but you know portable mortgages are not really meant for investment properties and again they're mostly meant for primary resident owners got it so mostly meant for individuals that are looking to get out of their primary residence by moving so they need to port their mortgage and transfer to the new property so similar to assumable mortgages so similar to assumable mortgages okay they're not really created for investors but more for people that are trying to because with assumable loans you're taking over somebody else's mortgage okay with portable mortgages you're taking over your own mortgage and turning and transferring it to the new property now this is a sad subject but just because we're in the compass headquarters how does that benefit real estate agents that are trying to get more business my goodness it would it would help tremendously I mean for to have the ability of a borrower utilize the his own credit worthiness his own terms his own interest rates and be able to transfer that to a new mortgage to apologize to a new home that's gonna skyrocket to sell the sales wow for for real estate here in Florida or anywhere in the nation interesting yeah so if portable mortgages were introduced in the US do you think it would be successful absolutely it it would be the most I believe would be one of the most successful programs that the United States have ever allowed to have here in the US because you know having a portable mortgage is gonna save half of the nation uh and and being able to be freed and being able to move and be able to do all these new all the things that they can't do because they're stuck at a home because they can't afford to move because rates are just too high wow yeah Christopher this is great information I absolutely appreciate it do you have anything else you want to mention to the audience yeah I mean if you have any questions or any concerns regarding how portable mortgages could uh could help you and uh and obviously we'll let you know in the future when these potential more uh portable mortgages will be available in the United States you can always reach out to me directly at 5 6 1 3 0 5 6 7 9 4 you can also email me at Chris dot tapia t a p I a at compass dot com so and again any questions please reach out to us fantastic well that's all the time we have for today Chris again I appreciate your this information thank you um if you made it this far in the video please like and subscribe uh that helps the the YouTube algorithm make sure that this video gets seen by by everybody out there uh and at the same time if you're interested in looking at distressed properties across the country make sure to sign up for our free foreclosure alerts at foreclosure.com forward slash alert um that way you can get these types of properties sent directly to your inbox until next time I'm Tim Jones and thank you for watching thank you