Portable Mortgage

• The portable mortgage is a type of loan that you take with you when you move. Instead of selling your house, paying off your existing mortgage and then getting another one, you just use the same loan. This kind of loan is offered by a growing number of mortgage lenders as a way to accommodate those who move frequently or are unsure of how long they will live in their current location.
  
  

Benefits

• One of the primary benefits of using a portable mortgage is that you can lock in your interest rate over the long term, even if you have to change houses. With a portable mortgage, you do not have to worry about increasing interest rates over the long term. Another advantage of using a portable mortgage is that you can avoid paying closing costs more than once. This is an expense that could cost you thousands of dollars per occurrence, so you want to minimize this as much as possible.
  
  

Drawbacks

• One of the primary drawbacks of using a portable mortgage is that it can cost you more when compared with a regular loan. With this type of loan, the lender typically charges a premium on the interest rate as compared with a traditional mortgage. This means that if you only live in the house for a few years, you may spend more money on interest than you save with the portable mortgage feature.
  
  

Recalculation

• This mortgage works by recalculating the payment once you move. If the new house that you buy is almost exactly the same cost, you can usually keep the same mortgage payment. If you get a house that is more than $10,000 in difference than the original house, the lender will usually recalculate your mortgage payment. This gives you the flexibility that you need to get a house that is substantially different from the one you currently have.