Portable Mortgage?

[RE-Fin-54321]

Hi everyone! I was hoping someone here has some information on portable mortgages.

Mortgage Professor
Portable Mortgage: Definition and Much More from Answers.com

The above links provide brief overviews, but essentially a portable mortgage has the option to "port" your loan from 1 residence to your next property after moving. The problem is I can find almost no info about this, and any information available seems to focus on the Canadian or UK mortgage market (I am in the US). Has anyone heard of this before or know whether portable mortgages are available in the US? Is there some "gotcha" about this type of mortgage that makes them relatively unknown?

My question arises because DW and I were considering refinancing our 5/1 ARM (3 years left) into a 30 year fixed rate. Given the recent crunch and interest rate declines, we were hoping with our good credit we could find a lender who would cover the costs and get us an equal rate after refi'ing to the 30 year fixed. We probably won't be in the home much longer than 3 years, but I figured if we could do it for free, why not. However, if we could lock in a 30 year fixed at today's rates and "port" this to our next home (given that interest rates, in my mind, don't have anywhere to go but up over the next 5 years) this would be a deal that I would pay for.

I would greatly appreciate experiences or information anyone could provide. Thanks!

 

[cute fuzzy bunny]

As far as I know, your original loan needs to be of the "portable" variety for it to be carried to another property. Perhaps someone allows you to take an existing mortgage and convert it to a portable but it'd have to be with a company that already has them. Not many do.

The interest rate would also probably be unfavorable. IIRC the big savings was a big reduction in closing costs.

 

[pedorrero]

Sorry but I can't resist...

In the USA, you can qualify for a mortgage on an RV (Mobile Home -- the kind you actually drive), if it meets certain requirements and will be your home. This would be an example of a portable mortgage, no?

 

[MooreBonds]

Has anyone heard of this before or know whether portable mortgages are available in the US? Is there some "gotcha" about this type of mortgage that makes them relatively unknown?

I remember E-Trade offering this type of mortgage a few years back (in the US), and thought it was a very interesting concept. Don't know if they (or anyone else) still offers it. Also don't know what additional fine print comes along with it (like possible additional recording fees/appraisals/other fees when you try to transfer your mortgage to your new home).