Video Transcript
Portable mortgage? What are you talking about? Again, the government just put out a message on Twitter like some thought balloon about portable mortgages and how will help affordability. And no, it's not a thing and it won't be a thing because mortgages are loans against property, not people. Because mortgages are securitized into bonds and to change the underlying collateral would require the owners of those bonds to approve it, which they won't. And what about state law? And what about recourse? And what about if the new property is a condo? And most obvious: mortgage companies and banks make money on making new loans. They are not going go for a plan that lets you get a new mortgage now and then never get one again. So as always, you have to ask, why is this idea coming out now and who stands to benefit from it? Certainly not you who now has to read all about portable mortgages everywhere. It's not going to happen. I'm Dan with Homebuyer.com. Happy homebuying.
Portable Mortgage Convo Dead-on-Arrival
The concept of portable mortgages, recently suggested by the government, is deemed unfeasible due to the nature of mortgage securitization and state laws. Experts argue that lenders profit from issuing new loans, making such a plan unlikely.
Video Transcript
Portable mortgage? What are you talking about? Again, the government just put out a message on Twitter like some thought balloon about portable mortgages and how will help affordability. And no, it's not a thing and it won't be a thing because mortgages are loans against property, not people. Because mortgages are securitized into bonds and to change the underlying collateral would require the owners of those bonds to approve it, which they won't. And what about state law? And what about recourse? And what about if the new property is a condo? And most obvious: mortgage companies and banks make money on making new loans. They are not going go for a plan that lets you get a new mortgage now and then never get one again. So as always, you have to ask, why is this idea coming out now and who stands to benefit from it? Certainly not you who now has to read all about portable mortgages everywhere. It's not going to happen. I'm Dan with Homebuyer.com. Happy homebuying.
