Difference Between Portable Mortgage And Assumable Mortgageanda


Are you looking for a new home or your mortgage situation doesn’t fit your current circumstances? If you are listing, selling, or moving from a property to a new one, a portable and assumable mortgage option might be best for you. Despite that, knowing the differences and establishing basic knowledge about them can be good for you.

How Does Portable Mortgage Work

If you found a new home to purchase but you are still on an existing mortgage term, porting a mortgage might be a good option and benefit you. A portable mortgage permits you to reassign your current property to a new one during which you retain the features of your original mortgage.

This is only granted when you are selling your home during the time when you are buying a new one. When the new one is pricier, you’ll have to request more funds from the lender resulting in a blended mortgage.

A blended mortgage is when your real estate mortgage rate is fused to the new property’s rates

and mortgage amount will increase interest rates.

•Maintain your favorable interest rate, mortgage broker, and lender.

•Avoids breaking your mortgage

•Less hassle of providing documents and other administrative processes.

•Do not have to pay penalty fees related to the relocation and transmission

•Saves you a great amount of money from closing costs

•Not required to reestablish your current year term especially when the year is fixed


•Lenders and brokers would reassess your existing mortgage to qualify for their criteria

•If the assessment is not qualified, you may be required to refinance.

•You could have pre-payment penalties when the new property doesn’t suit the lender’s criteria based on requalification.
•Increases your mortgage payment as a result of blended terms.

•You could only port once

•There could be penalties for a break from the reassessment process.

How Does Assumable Mortgage Work

A mortgage assumption is a type of mortgage product that enables one to sell their current mortgage terms to a new home buyer.
The seller is freed from his existing liabilities and expenses while the home buyer takes over the remaining monthly repayment bills. The purchaser complies to the conditions and settles the ongoing debt of the home owner.


•You could earn a significant amount of money considering your interest rates gone higher since your first mortgage settlement.
•The buyer saves a hefty amount of cash when the mortgage balance and rate is lower than the existing current market rates.
•Your lower interest rates could be advantageous for the homebuyer.

•The home buyer could benefit from saving from administrative costs and application fees from the seller’s mortgage.
•Fewer to low closing fees.


•The process could outweigh the worthwhile effort of both borrowers and lenders.

•The buyer could cash out additional funds if the current mortgage doesn’t fit the full price of the property.
•The seller may cover-up for the home buyer’s inability to make his payments.

•Lenders are required to reassess the buyer for eligibility.

•There could be assumptions and appraisal.

Bad Credit And Mortgage

Getting a mortgage with a poor credit score could also be possible with regard to applying for a portable or assumption loan. You can seek help from a bad credit mortgage lender. Several mortgage professionals may give you advice on home loans for low credit scores as well as

mortgage products that suits your case.

Final Thoughts

Portable and assumable mortgage loans are not identical and respond to different situations. These mortgage products could be an alternative and help you depending on your specific needs and parameters

However, these programs may help, it’s a possibility to overcome potential savings without being aware of its potential financial risks. It’s recommended to converse with a mortgage professional first for experienced expert advice rather than stepping ahead on any decisions that may come up with.

Leave A Comment


We've put a lot to bring this content to you. Subscribe today to get the next post in your inbox.