The MOVE Act Explained: Could You Really Keep Your Mortgage Rate When You Move?

There's just one problem holding you back. Your current mortgage rate is 3%. Moving today means taking on a market rate twice as high. Giving up that low rate feels like throwing away money. This financial dilemma has trapped millions of U.S. homeowners in place.

Now, proposed federal legislation known as H.R. 10028, or the Making Ownership Viable for Everyone (MOVE) Act. Introduced as a legislative proposal concerning portable mortgages, the MOVE Act is currently pending congressional review and is not active law.

Could this proposal allow you to keep your 3% rate when you move?

The short answer is: potentially, under a specific secondary market framework if enacted but not automatically, not today, and with major practical questions still unanswered.

The Homeowner's Financial Dilemma

You need to move for work, family, or lifestyle reasons, but your 3.00% mortgage feels too valuable to abandon for a 6.50%+ market rate. Proposed legislation aims to address this tension, but it remains a bill in committee, not an active loan option.

The Direct Answer: Is the MOVE Act Law, and Can You Port Your Rate Today?

No. H.R. 10028 is not currently law, and homeowners cannot port a conventional mortgage in the United States today.

The MOVE Act was introduced on August 3, 2026, by Representative Thomas H. Kean Jr. It was referred to the House Committee on Financial Services for evaluation.

Legislative Status Fact Check: As of late 2026, H.R. 10028 remains proposed legislation. It has not passed the U.S. House of Representatives, has not passed the Senate, and has not been signed into law by the President. No mortgage lender can offer a portable conventional loan under this framework today.

If you are planning a move this season, you cannot rely on H.R. 10028 as an available financial tool. You can track the official legislative status of the bill directly through the H.R. 10028 on GovInfo database.

Legislative Status Check — Bill: H.R. 10028 (MOVE Act) | Sponsor: Rep. Thomas H. Kean Jr. | Status: Introduced & Referred to House Committee on Financial Services | Active Law: No.

What Is the MOVE Act? Deconstructing H.R. 10028

The Making Ownership Viable for Everyone Act is designed to tackle housing market stagnation at the institutional level.

Instead of creating a new government subsidy, H.R. 10028 directs the federal entities that back most American mortgages to create a standard process for portable loans. Specifically, it targets Fannie Mae and Freddie Mac—the Government-Sponsored Enterprises (GSEs) that purchase and securitize conventional residential mortgages.

If passed into law, the bill establishes a mandatory deadline. Within 180 days after enactment, Fannie Mae and Freddie Mac would be required to update their purchasing and securitization standards to accommodate qualifying portable mortgages.

It is vital to understand that H.R. 10028 does not directly lend money to consumers.

Rather, it creates a secondary market mechanism. By requiring GSEs to buy portable loans from private lenders, the bill aims to give banks and mortgage companies the liquidity and standard framework needed to offer portable options to everyday buyers.

You can read the exact statutory wording in the Official H.R. 10028 Bill Text or review Representative Kean's MOVE Act Announcement regarding the bill's legislative intent.

What Is a Portable Mortgage?

In standard American real estate transactions, a mortgage is tied directly to a specific piece of physical real estate.

Under current standard operations, when you sell Property A, your existing mortgage must be paid off in full at closing. If you buy Property B, you must apply for an entirely new primary mortgage at prevailing market interest rates.

A portable mortgage breaks this tradition through a legal process known as collateral substitution.

With a portable loan, the underlying debt, interest rate, and original loan terms remain intact. What changes is the real property securing the loan: the lender releases its lien on Property A and attaches that same loan obligation to Property B.

Mortgage portability is already common in international housing markets, including Canada and the United Kingdom. However, it is largely non-existent for conventional loans in the United States.

Why? Because virtually all standard U.S. mortgage contracts contain enforceable "due-on-sale" clauses. These clauses give lenders the legal right to demand full repayment of the loan balance as soon as the pledged property is sold or transferred.

Federal authorization for due-on-sale enforcement is codified under 12 U.S.C. § 1701j-3 — Due-on-Sale Law. Without statutory updates or secondary market standard changes, lenders enforce these clauses to clear low-yielding debt when homes change hands.

Deconstructing Section 2: Three Phrases That Change Everything

The entire mechanism of H.R. 10028 rests within Section 2 of its brief statutory text. To understand how the proposal would function, you must examine three core statutory phrases.

"Interest Rate, Terms and Balance"

This phrase defines what actually moves from your old home to your new home. Under proposed Section 2, a portable mortgage permits a qualifying borrower to transfer three core contractual components intact:

1. The exact contract interest rate (such as your existing 3.00% fixed rate).
   
   
2. The remaining repayment terms (such as 22 years left on a 30-year schedule).
   
   
3. The remaining unpaid principal balance (such as $300,000).
   
   

The proposal does not increase your existing loan amount to match a higher purchase price; it transfers only the existing balance and terms.

"Permitted by Mortgagee"

This is perhaps the most critical phrase in the entire bill.

H.R. 10028 states that GSE standards would apply to loans where portability is "permitted by mortgagee."

Notice what this wording does not say. It does not mandate that banks must automatically rewrite every existing mortgage contract in America upon request.

Because mortgage contracts are legally binding private agreements, a lender or investor is not automatically forced to give up a due-on-sale clause unless the underlying contract or governing regulations require it. This distinction is why claims that "everyone with a 3% mortgage can automatically port it" are factually inaccurate.

"Within 90 Days"

Porting a mortgage is not an indefinite privilege. The statutory text requires that the transfer of collateral to the replacement property must occur within 90 days after the sale of the original property.

If a homeowner sells their original residence but takes 6 months to find and close on a new property, the 90-day window would expire. The bill does not specify bridge-financing mechanisms for borrowers who miss this strict window.

Three Phrases to Remember 

1. "Interest Rate, Terms, and Balance" (The components that move intact)

2. "Permitted by Mortgagee" (Requires lender consent or contract provisions)

3. "Within 90 Days" (The maximum timeline to secure replacement collateral)

Covered Mortgages: Which Loans Could Potentially Qualify?

Not all home loans are created equal. H.R. 10028 specifically references the governing charters of Fannie Mae (Federal National Mortgage Association Charter Act) and Freddie Mac (Federal Home Loan Mortgage Corporation Act).

This means the bill applies strictly to conventional mortgages that meet GSE purchase eligibility.

Mortgage Type	Potential MOVE Act Treatment	Important Distinction
Conventional GSE Loans	Potentially Covered	Subject to future Fannie Mae & Freddie Mac underwriting guidelines.
FHA Loans	Excluded from H.R. 10028	FHA loans are government-backed (HUD) and already have assumption mechanisms, not portability.
VA Loans	Excluded from H.R. 10028	VA loans are backed by Veterans Affairs and feature rate assumption rights for qualified buyers.
USDA Loans	Excluded from H.R. 10028	USDA rural development loans fall outside GSE charter definitions.
Jumbo Loans	Excluded from H.R. 10028	Non-conforming jumbo loans exceed GSE limits and are held or securitized privately.
Bank Portfolio Loans	Excluded from H.R. 10028	Loans kept on a bank's private balance sheet are governed by private contractual terms.

Government-backed loans (FHA and VA) feature loan assumption rules, which allow a new home buyer to take over a seller's existing mortgage on the same house. However, assumption is fundamentally different from portability, which allows the same homeowner to take their loan to a different house.

What Happens If Your Next Home Costs More?

What happens when a homeowner tries to port a mortgage to a replacement home with a higher purchase price?

Consider a standard scenario facing a growing family today:

ILLUSTRATIVE EXAMPLE — NOT A QUOTE, GUARANTEE, OR STATUTORY RULE Current Home & Mortgage: • Current Loan Balance: $300,000 • Contract Interest Rate: 3.00% Fixed Replacement Property Purchase: • Target Purchase Price: $500,000 The Porting Calculation: • Ported Principal Balance: $300,000 (Transfers at 3.00%) • Uncovered Financing Gap: $200,000

How is that remaining $200,000 purchase price funded?

The current bill text does not specify how additional financing for a more expensive replacement property would be structured.

Would a borrower need to contribute $200,000 in cash equity from their previous sale? Would lenders offer a second mortgage at current market rates (e.g., 6.50%)? Would GSEs allow a blended-rate loan structure?

H.R. 10028 does not answer these questions. It leaves all operational mechanics for supplemental financing to future regulatory framework decisions or lender discretion.

Similarly, if a homeowner downsizes from a $300,000 balance to a $200,000 condo, they cannot port more debt than the replacement property's value supports. Excess loan balance would have to be paid off during closing.

What H.R. 10028 Says—and What It Doesn't

Because the MOVE Act is a high-level policy proposal spanning just two pages, there is a vast difference between what the statutory text establishes and what remains entirely unknown.

What the Bill Says (Statutory Facts)	What the Current Bill Does Not Specify (Unresolved Operational Details)
Directs Fannie Mae & Freddie Mac to create standards within 180 days of enactment.	Retroactivity: Does not specify if existing mortgages originated years ago can automatically port.
Permits transfer of interest rate, remaining terms, and unpaid balance.	Supplemental Loans: Does not define rules for second mortgages or cash gaps on higher-priced homes.
Establishes a 90-day re-collateralization window post-sale.	Underwriting: Does not state credit score, DTI, or LTV requirements for collateral substitution.
Applies strictly to conventional loans under GSE charter definitions.	Escrow & PMI: Does not specify how private mortgage insurance or escrow accounts transfer.
Conditioned on transfers "permitted by mortgagee."	Lender Mandates: Does not explicitly force private lenders to modify existing mortgage contracts.

Whenever you evaluate news coverage regarding H.R. 10028, remember this baseline truth: if a specific operational detail is not listed in the left column above, the current bill text does not specify this.

Why Is Congress Discussing This? The Mortgage Lock-In Effect

Lawmakers are paying attention to mortgage portability because the U.S. housing market has experienced a historical phenomenon known as the mortgage lock-in effect.

During 2020 and 2021, millions of American homeowners refinanced or purchased homes at record-low interest rates between 2.50% and 4.00%. When inflation prompted rapid rate hikes in 2022 and 2023, prevailing mortgage rates surged above 6.00% and 7.00%.

This created a massive financial wedge.

A homeowner who wants to move for family or employment reasons faces a doubling of their monthly interest expense if they trade their current loan for a new one. As a result, rational homeowners choose to stay put.

This hesitation severely reduces the supply of existing homes for sale, creating inventory shortages across national markets.

According to authoritative FHFA Research on the Mortgage Lock-In Effect, mortgage rate lock-in prevented an estimated 1.72 million existing-home sales in the United States between the second quarter of 2022 and the second quarter of 2024.

By proposing mortgage portability, Congress is exploring ways to unfreeze this housing inventory without requiring federal interest rate bailouts.

Could Portable Mortgages Help—or Create New Problems?

Policy analysts, mortgage lenders, and economists view mortgage portability through different lenses.

Potential Benefits

• Increased Homeowner Mobility: Families could move for career advancement, growing needs, or downsizing without suffering severe financial penalties.
  
  
• Expanded Housing Inventory: Removing rate lock-in could encourage existing owners to list their properties, restoring healthier resale supply.
  
  
• Economic Transaction Activity: Increased sales volume supports broader real estate services, from title companies to moving industries.
  
  

Potential Challenges

• Extension Risk for Investors: Mortgage-Backed Securities (MBS) rely on predictable loan prepayments when homes are sold. If loans stay active for 30 full years via portability, investors face extension risk.
  
  
• Higher Primary Interest Rates: If Wall Street investors absorb greater extension risk, they may demand higher yields, potentially increasing primary mortgage rates for future first-time buyers.
  
  
• Servicing and Title Complexity: Transferring real estate liens across county or state lines within 90 days introduces complex legal and operational hurdles for loan servicers.
  
  

Potential Mobility Benefits vs. Implementation Challenges — Balancing Act: Unfreezing 1.72 million trapped housing transactions could revitalize market inventory, but capital market risks could alter how future mortgage debt is priced.

What Has to Happen Before the MOVE Act Could Affect Homeowners?

To evaluate whether H.R. 10028 could ever apply to your household, it helps to track the required federal legislative and regulatory steps.

LEGISLATIVE & IMPLEMENTATION PATHWAY

[STEP 1: Introduction] ──► Introduced in House by Rep. Kean (COMPLETED: Aug 3, 2026)

[STEP 2: Committee Review] ──► Pending in House Financial Services Committee (CURRENT STATUS)

[STEP 3: Floor Votes] ──► Must pass full House of Representatives & U.S. Senate (STILL REQUIRED)

[STEP 4: Presidential Action] ──► Signed into law by the President (STILL REQUIRED)

[STEP 5: GSE Rulemaking] ──► 180-Day Fannie Mae & Freddie Mac rule implementation (STILL REQUIRED)

[STEP 6: Consumer Rollout] ──► Lenders update loan origination software & consumer offerings (STILL REQUIRED)

Until Step 4 and Step 5 occur, portable conventional loans remain a theoretical policy framework rather than an available mortgage product.

Frequently Asked Questions

Is the MOVE Act active law?

No. H.R. 10028 is a legislative proposal introduced in August 2026. It is currently pending committee review in the House of Representatives and has not been enacted into law.

Can I keep my 3% mortgage rate if I move today?

Under standard U.S. conventional mortgage contracts today, no. Existing loans enforce due-on-sale clauses that require full balance repayment when your property is sold.

What is a portable mortgage?

A portable mortgage is a home loan that allows a borrower to transfer their existing interest rate, loan terms, and principal balance from their current residence to a replacement property using collateral substitution.

Does the MOVE Act apply to mortgages I already have?

The current bill text does not specify retroactive mandates for existing loans. It conditions portability on terms "permitted by mortgagee," leaving existing contract modifications unresolved.

Which mortgages could potentially be covered?

H.R. 10028 applies strictly to conventional mortgages eligible for purchase by Fannie Mae and Freddie Mac.

Does the MOVE Act include FHA or VA loans?

No. FHA and VA loans are government-backed mortgages governed by HUD and VA guidelines. They are excluded from H.R. 10028, though they feature separate loan assumption rules.

Would I have to qualify again to port my mortgage?

H.R. 10028 does not waive underwriting requirements. Borrowers would likely need to satisfy GSE credit, income, employment, and appraisal standards for the replacement property.

What happens if my next home costs more than my loan balance?

Your existing balance ports at the original contract rate, but the current bill text does not specify how additional financing for the price difference would be structured.

How long would I have to buy another property under the bill?

Section 2 of H.R. 10028 specifies that the property transfer and re-collateralization must be completed within 90 days of selling the original home.

Final Homeowner Takeaway: Could You Really Keep Your 3% Rate?

If you are holding a 3% mortgage today, the concept behind H.R. 10028 offers a compelling vision: the ability to move when life demands it without surrendering the financial advantage of low interest rates.

Could the MOVE Act really let you keep that rate?

Potentially in the future, under the specific secondary market framework H.R. 10028 seeks to establish—but not automatically, not today, and only if the bill passes, survives regulatory design, and receives lender execution.

For now, the house you live in may no longer fit your life, but that ultra-low mortgage rate remains tied to its address.

When making housing decisions today, homeowners should rely on financial options and loan programs currently available in the market rather than pending legislation.

Curious what moving would look like with your current equity and today's financing options? A qualified real estate and mortgage professional can help you evaluate the choices available now.