Portable Mortgage

Mortgage that allows the borrower to transfer the outstanding balance of an existing mortgage loan at the same rate when selling one house and buying another. The borrower pays a premium over fixed rate mortgages of comparable maturity, in addition to title insurance and appraisal fees at the time the mortgage deed is transferred. An advantage to the borrower, however, is the absence of closing costs and Discount Points when buying a new home. See also Assumable Mortgage.