The Portable Mortgage MOVE Act: What It Is, How It Helps Homeowners, and Where It Stands Now

Introduction: The Rate Lock-In Problem

Millions of American homeowners are sitting on mortgages with rates between 2.5% and 3.5%, secured during the historically low interest rate environment of 2020 through 2022. Today, mortgage rates hover above 6.5%, creating what economists call the "rate lock-in effect" homeowners who would love to move, downsize, or relocate feel financially trapped because giving up their current mortgage means trading a manageable payment for one that could be hundreds of dollars more per month.

This lock-in effect is one of the primary reasons the housing market has seen historically low inventory levels. Homeowners are staying put not because they want to, but because they cannot afford to leave their low rate behind.

For Baby Boomers and retirees in Virginia who are ready to downsize, move closer to family, or transition to a 55+ community, this rate lock-in represents a significant barrier to the lifestyle change they have been planning for years. The proposed MOVE Act could change everything. Representative Tom Kean Jr. introduced H.R. 10028 on August 3, 2026, with the goal of tackling this problem head-on.

What Is the MOVE Act?

The Making Ownership Viable for Everyone (MOVE) Act is a proposed federal bill designed to tackle the housing affordability and mobility crisis head-on. Its official bill number is H.R. 10028. According to Congressman Kean's official press release, the bill would "require Fannie Mae and Freddie Mac to purchase and securitize portable mortgages," a step that could unlock mobility for millions of homeowners locked into historically low interest rates.

In plain English, the MOVE Act would allow homeowners to take their existing mortgage rate, loan terms, and remaining balance with them when they buy a new home. Instead of being locked into their current house by an unbeatable interest rate, they could carry that rate to their next property.

What Is a Portable Mortgage?

A portable mortgage is exactly what it sounds like: a home loan that moves with the borrower, not the property. When you sell your current home, instead of paying off your existing mortgage and applying for a new one at today's higher rates, you transfer your current mortgage to the new property.

Here is how it works in practice: Imagine you have a $300,000 mortgage at 3.5% on your current home. You find a smaller condo or 55+ community home that you want to move into. Under a portable mortgage, you could take that same $300,000 loan balance and 3.5% interest rate with you to the new property, keeping your monthly payment low and predictable.

It is important to understand the difference between a portable mortgage and an assumable mortgage:

How the MOVE Act Helps Homeowners

The MOVE Act addresses several critical challenges facing the housing market today. Here are the main ways it would benefit homeowners, especially those considering downsizing or relocation:

How It Works Technically

While the final mechanics would depend on how Fannie Mae and Freddie Mac implement the program, the general process would work something like this. As reported by National Mortgage News and American Banker on August 6, 2026, the legislation specifically calls for government-sponsored enterprises to begin purchasing these portable mortgage products, a key step that would enable lenders to offer them at scale.

1. You sell your current home. The mortgage lender releases the lien on the old property.
2. You purchase a new home. The lender transfers your existing mortgage, including the interest rate, loan terms, and remaining balance, to the new property.
3. Fannie Mae or Freddie Mac purchases the portable mortgage from the lender, which enables lenders to offer these products without holding the risk themselves.
4. You must qualify for the new property. The portable mortgage transfers the rate and terms, but you still need to meet the lender's underwriting requirements for the new home, including creditworthiness and the ability to repay.
5. The transfer happens within 90 days. The bill contemplates a 90-day window between selling your old home and porting the mortgage to the new property.

Current Status of the Bill

As of August 2026, H.R. 10028 has been introduced and referred to the House Committee on Financial Services. It has not passed the House of Representatives, the Senate, or been signed into law by the President. The full text of the bill is available on Congress.gov, and its progress can be tracked through the GovTrack.us bill tracker.

The legislative process for a bill like this typically involves committee hearings, markups, floor votes in both chambers, and reconciliation of any differences between House and Senate versions. Even with bipartisan support, this process can take months or years, and there is no guarantee the bill will pass in its current form or at all.

It is critical to understand that the MOVE Act is a proposed bill, not a law. No portable mortgage program currently exists for conventional loans insured by Fannie Mae and Freddie Mac. Any article or social media post suggesting the MOVE Act is already in effect is incorrect.

What This Means for Downsizers and Retirees

For Baby Boomers and retirees in Virginia, the MOVE Act addresses one of the most frustrating Catch-22s in the current housing market: you want to downsize to save money and simplify your life, but moving would actually increase your housing costs because of today's high rates.

Consider this scenario common in the Fredericksburg area: A couple bought their family home in Stafford County ten years ago, refinanced to a 3% rate during the pandemic, and now has about $250,000 remaining on their mortgage. They want to sell and move into an active adult community or a low-maintenance condo nearby. Without portability, they would have to take out a new mortgage at 6.5% or higher on a new home, potentially paying more each month despite borrowing less money.

With a portable mortgage, they could carry their 3% rate to the new, smaller home. Their monthly payment stays manageable, their equity goes toward the purchase, and they finally have the freedom to make the lifestyle change they have been planning.

The MOVE Act is especially relevant for homeowners looking to move into 55+ communities, condos, and maintenance-free homes across Fredericksburg, Stafford, Spotsylvania, Culpeper, King George, and the broader Northern Virginia region. It would unlock the ability to relocate closer to grandchildren, near healthcare facilities, or to lower-cost areas without the financial penalty of rate lock-in.

Potential Concerns and Criticisms

No policy proposal is without trade-offs. Here are some of the concerns economists and policymakers have raised about portable mortgages:

What Should You Do Now?

While the MOVE Act works its way through Congress, here are practical steps you can take:

• Stay informed. Follow the bill's progress through Congress. The Committee on Financial Services will hold hearings, and updates will be published on congress.gov.
• Talk to Barbara and Doug. Even without the MOVE Act in place, there are strategies to downsize smartly. The Jennings Team has helped hundreds of Virginia homeowners navigate exactly this situation.
• Do not wait indefinitely. If your dream home or community becomes available, do not assume the MOVE Act will save you. Make decisions based on current law, not proposed legislation.
• Explore your options. Run the numbers on downsizing both with and without your current rate. You might be surprised how equity, lower purchase prices, and reduced maintenance costs can offset a higher mortgage rate.

Frequently Asked Questions