"Assumable mortgages which allow qualified buyers to take over a seller's existing loan terms, including its balance and interest rate have drawn cautious optimism from industry participants."
"But portable mortgages, which let borrowers transfer an existing loan from one property to another, face more skepticism."
"And while the idea may sound appealing given how low rates were not long ago, existing loans can't be rewritten to make them portable, so it wouldn't provide any immediate relief."
"With the stroke of a pen, trillions of dollars in sub-5% loans would be on the market and available to buyers."
A proposal for 50-year mortgages drew criticism for limited impact on affordability because of significantly higher life-of-loan interest costs. Assumable mortgages allow qualified buyers to take over a seller's existing loan terms, including balance and interest rate, and have attracted cautious optimism. Portable mortgages, which let borrowers transfer an existing loan from one property to another, face skepticism because most U.S. residential loans do not permit portability under their contractual terms. Making conventional mortgages portable would likely reduce originations and further strain a struggling industry. Portability is common in countries like Canada, Australia and the U.K., but requires administrative coordination and would not provide immediate relief for existing loans.
Read at www.housingwire.com
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