Mortgage strategy + policy watch
What If Your 3% Mortgage Could Move With You?
A plain-English look at the proposed MOVE Act.
A low mortgage rate can feel like one of the most valuable things a homeowner owns—and, at the same time, the very thing keeping that homeowner from making a needed move.
My family and I understand this personally. We have a mortgage around 3%, and while we would love to consider making a change, replacing that loan with financing near today’s 7% range changes the monthly-payment calculation dramatically.
We are not alone.
Millions of homeowners purchased or refinanced when mortgage rates were historically low. Some now need more space, less space, a different location, or a home that better fits the next chapter of their lives—but giving up a 3% or 4% mortgage can make the move financially difficult.
This is known as the mortgage-rate “lock-in” effect.
Research from the Federal Housing Finance Agency found that, for every percentage point by which current rates exceeded a homeowner’s original rate, the probability of that household selling decreased by an estimated 18.1%. FHFA subsequently estimated that rate lock-in was associated with approximately 1.72 million lost home sales between the second quarter of 2022 and the second quarter of 2024.
That is why the proposed MOVE Act deserves attention.
01 · The proposal
What Is the MOVE Act?
The Making Ownership Viable for Everyone Act, or MOVE Act, is proposed federal legislation introduced as H.R. 10028.
The idea is relatively straightforward: create greater access to portable conventional mortgages.
Under the proposal, a qualifying borrower could potentially carry the interest rate, terms, and remaining balance of a mortgage from the current home to a replacement property.
Same borrower. Different home. Potentially the same underlying mortgage.
The bill states that the transfer would need to occur within 90 days after the original property is sold. If the proposal became law, Fannie Mae and Freddie Mac would have up to 180 days after enactment to begin purchasing and securitizing the qualifying portable mortgages described in the legislation.
02 · Current status
Is the MOVE Act Law?
No.
As of September 22, 2026, H.R. 10028 has been introduced in the House of Representatives and referred to the House Committee on Financial Services. It has not passed the House or Senate and has not been signed into law.
The 180-day implementation period has therefore not begun.
Homeowners cannot currently use the MOVE Act to transfer an existing conventional mortgage to another property.
03 · The central question
Would Your Existing 3% Mortgage Qualify?
That is one of the biggest unanswered questions.
The introduced legislation is brief. It directs Fannie Mae and Freddie Mac to begin purchasing and securitizing certain portable conventional mortgages, but it does not expressly state that every existing mortgage would automatically become portable.
It also does not fully explain:
- Whether existing loans would qualify
- Whether borrowers would have to complete new underwriting
- What credit, income, or debt-to-income requirements would apply
- How the replacement property would be appraised
- How additional financing would work if the new home costs more
- What happens when the replacement home costs less
- How mortgage insurance, escrow accounts, or existing HELOCs would be handled
- What fees lenders could charge
- Whether every lender would participate
Those details would likely require additional legislation, regulatory guidance, and mortgage-program rules.
04 · Why it could matter
The Payment Difference Is Real
Consider a homeowner who needs a larger home but currently has a 3% mortgage.
Using a simple educational illustration, the principal-and-interest payment on a new 30-year, $400,000 mortgage would be approximately:
Approximately $961 more each month—before property taxes, homeowners insurance, mortgage insurance, or HOA expenses.
A portable mortgage could potentially allow that homeowner to preserve the economics of the existing loan balance while arranging separate financing for any additional amount needed.
That could make certain moves more manageable and could encourage more homeowners to list properties that are currently being held off the market.
However, portability would not solve every affordability or housing-supply problem. It could introduce new underwriting, servicing, and secondary-market challenges, and it would not automatically give first-time buyers access to the low rates secured by existing homeowners.
05 · What to do now
Do Not Wait for Congress to Understand Your Options
Do not make a housing decision based on proposed legislation that may be amended, delayed, or never enacted.
But do not assume your current mortgage automatically means you cannot move, either.
A productive first step is to examine:
- Your remaining mortgage balance
- Your current property value and available equity
- Your expected sale proceeds
- The price range of your replacement home
- The amount of additional financing required
- Your comfortable monthly-payment range
- Whether waiting or moving now better supports your family’s goals
Sometimes the rate makes a move impractical. In other situations, accumulated equity, a smaller replacement home, builder incentives, seller concessions, or a different financing structure may create a workable path.
Your mortgage is an important part of the decision—but it should be evaluated alongside the complete story of where you are and where you want to go next.
Run the numbers.
Then decide.
If you are holding a low mortgage rate and wondering whether a move is still possible, I would be glad to help you evaluate the real-estate side of the decision and coordinate with an appropriately licensed mortgage professional.