You bought or refinanced when rates were low, and your monthly payment still shows it. Then life changed. The family grew, a job moved, or the stairs started to feel steeper every year. Across Maine and New Hampshire, plenty of homeowners are holding a low rate and a good reason to move at the same time.
Selling and buying the usual way means trading your rate for today’s, and that trade can add hundreds of dollars to a monthly payment. This post covers what your low rate is worth, three ways to keep some or all of it, and how to choose.
What Your Low Rate Is Worth Today
Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.40% as of October 15, 2026. An example loan shows what that gap means in dollars. A $250,000 mortgage over 30 years at 3% carries a principal-and-interest payment of about $1,054 a month. The same loan at 7.40% comes to about $1,731, roughly $677 more every month before taxes and insurance. Your own numbers will differ.
You have a lot of company. FHFA’s National Mortgage Database, a 5% sample of closed-end first-lien mortgages, shows that about 17% of Maine’s outstanding mortgages carried a rate below 3% in the second quarter of 2026, and another 30% were between 3% and 4%. In New Hampshire, those shares were about 21% and 32%.
Our post on Maine home prices explains how this lock-in effect keeps listings off the market.
Staying Put and Borrowing Against Your Equity
Sometimes the reason to move is the house itself. It needs another bedroom, a first-floor bath, or work you’ve put off for years. Borrowing against your equity to improve it can take the place of a move.
The CFPB explains that a home equity loan pays out a lump sum and usually carries a fixed rate, while a home equity line of credit (HELOC) works like a credit line you draw on as needed and usually carries an adjustable rate. Both are second loans that sit behind your first mortgage, so your 3% loan stays where it is. Only the new money is priced at today’s rates. Borrow $50,000 at an example rate of 8% over 15 years, and that new loan costs about $478 a month while your existing payment doesn’t change.
There are two risks to weigh. Your home secures the new loan, so falling behind on it puts the house at risk, and a HELOC’s adjustable rate can push your payment higher over time. Ask your credit union or lender which home equity products they offer, and a CUSO loan officer can show you how that choice compares with a new mortgage.
Taking Over a Seller’s Low-Rate Loan
If you’re buying your next home, you may be able to take over the seller’s mortgage, interest rate included. This is called assuming a loan, and it depends on what kind of loan the seller has.
Conventional fixed-rate loans, the kind Fannie Mae buys, can’t be assumed, because their due-on-sale clause requires the loan to be paid off when the home sells. FHA, VA, and USDA loans can be assumed with approval. FHFA’s data puts them at about 21% of Maine’s outstanding mortgages (16% in New Hampshire), and nearly half of the Maine loans carry a rate under 4%.
The seller’s loan servicer handles the request, and for VA and USDA loans the agency can have the final say. Keep in mind that the rules differ by program.
- FHA: The lender that holds or services the loan must find the buyer creditworthy.
- VA: You don’t have to be a veteran to assume a VA loan. The servicer, and sometimes VA, reviews your income and credit, and the funding fee on an assumption is 0.5% of the loan balance unless you’re exempt.
- USDA: Rural Development must approve the transfer, and you must meet USDA’s income and owner-occupancy rules. The rate can’t exceed the seller’s original rate, but the rules don’t promise it stays the same, so it’s important to ask.
The catch is the gap between the price and the loan balance. If the seller owes $250,000 on a $400,000 home, you need to cover the $150,000 difference with cash or other financing the program allows. VA permits a second loan alongside an assumption under set conditions, and USDA can approve a supplemental loan.
See our guides to low down payment options and USDA loans in Maine for more on these programs.
Buying Now With a Plan to Refinance Later
If your timeline can’t wait, you can buy at today’s rate and plan to refinance if rates come down. A temporary buydown can make the first years of that plan easier to carry. A seller or lender puts a lump sum into an account at closing, and that money covers part of your monthly payment for the first one to three years.
An example of a 2-1 buydown makes it easier to picture. Say you buy a $375,000 home with 20% down and borrow $300,000 at a 7.40% note rate. Your full principal-and-interest payment would be about $2,077 a month. With a 2-1 buydown, the payment steps up over three years:
- Year one: calculated at 5.40% (2 points lower), about $1,685 a month
- Year two: calculated at 6.40% (1 point lower), about $1,877 a month
- Year three onward: the full 7.40% payment, about $2,077 a month
Covering the difference for those first two years costs about $7,100, which in this example the seller pays at closing. With 20% down, Fannie Mae lets a seller contribute up to 6% of the price (or the appraised value, if lower), which is $22,500 on this home, so a buydown this size fits within the limit.
The buydown doesn’t change your note rate, and Fannie Mae requires lenders to qualify you at the full note rate, so the lower starting payment doesn’t count toward your approval. Our points guide covers permanent buydowns, which work differently.
Refinancing later is a bet on where rates go. Freddie Mac says to expect to spend 3% to 6% of your loan principal on a refinance, so the new rate has to save enough each month to cover that cost. No one can promise rates will fall, so the full payment should be one you can carry for the long run.
You can read about refinancing with CUSO on our refinance page.
How to Decide Which Path Fits
- Do you need to move, or do you need more room? If it’s room, borrowing against your equity may let you keep both the house and the 3% loan.
- What kind of loan does the seller have? Assuming only works with FHA, VA, or USDA financing, so ask early in your search.
- How long will you stay in the next home? The longer you stay, the more time a future refinance has to pay for its costs.
- What payment fits your budget today? Choose a path you could carry even if rates never fall.
Compare the Paths Before You List
Giving up a low rate is a decision best made with the numbers in front of you. CUSO has helped Maine and New Hampshire buyers and homeowners for more than 30 years, and our local loan officers can set a new mortgage at today’s rate side by side with the options above, using your balance, your home’s value, and your timeline. If any terms here are new to you, our mortgage glossary is a good place to start.
Frequently Asked Questions
Can I take my 3% rate with me to a new house?
No. A standard mortgage is paid off when you sell, unless the buyer assumes it. To hold onto a low rate, you can stay in your home and borrow against its equity, or assume a seller’s FHA, VA, or USDA loan on the home you buy. A CUSO loan officer can help you figure out which fits.
What happens when a temporary buydown ends?
Your payment steps up to the full note-rate payment, the same one you were approved for at the start. In the example above, that’s about $2,077 a month beginning in year three. Since you qualified at that payment, it shouldn’t be a surprise, but plan for it from day one.
Will my HELOC payment stay the same?
Probably not. HELOC rates are usually adjustable, so your payment can rise when rates do. A lender can also freeze or reduce your credit line if your home’s value falls significantly.
Should I wait for rates to come down before I move?
Nobody controls where rates go, and waiting has its own costs if a job, a school year, or a growing family sets your timeline. Run each option at today’s rate and see what fits. If rates fall later, a refinance becomes one more option.
The math is different for every household. Talk with one of our local loan officers, or start your application when you’re ready.
