Buying a home in Andover or North Andover is a major milestone, and for many buyers and sellers in these two high-demand Merrimack Valley towns, understanding how mortgages work can make the difference between a smooth move and a stressful one. And with interest rates much higher today than just a few years ago, more homeowners are asking the same question:

“If I already have a low mortgage rate on my Andover home, do I have to give it up when I move?”

Not always.
That’s where portable mortgages come in — a financial tool growing in popularity among local homeowners who want to move but don’t want to lose their great rate.

Let’s break everything down in simple terms.

How Mortgages Work (Explained in Plain English)

A mortgage is simply a loan you use to buy a home, paid back slowly over time. Each monthly payment includes:

• Principal (the amount you actually borrowed)

• Interest (the lender’s fee)

• Taxes and insurance, if included in escrow

In Andover and North Andover, where average home prices often range from the mid-$700s to well over $1M for single-family homes, mortgages are central to making homeownership possible for most families.

The Basic Mortgage Process in Andover/North Andover

Even though the two towns have different neighborhoods, price points, and competition levels, the mortgage process is the same:

1. Pre-Approval

Local lenders review your income, debt, and credit score to estimate what you can afford.

2. House Hunting

You search for homes in desirable neighborhoods such as:

• Bear Hill, Shawsheen Village, Colonial Heights

• Indian Ridge, Boxford border areas, or Old Center North Andover

Since inventory is tight, a strong pre-approval helps buyers stand out.

3. Offer + Appraisal

You make an offer, the bank orders an appraisal, and they verify the home’s value.

4. Closing

You sign documents, receive the keys, and your monthly payments begin.

Simple enough.
But what if you already live in Andover or North Andover and want to move within the area?

The Challenge: Homeowners Want to Move — But Rates Are Higher

Here’s the situation many local homeowners face:

• You bought your home years ago at 2.5%–3.5% interest.

• You now want to upgrade to a larger home or move into a different school district.

• But today’s rates are much higher than your current rate.

This can make moving feel financially impossible — unless your mortgage is portable.

What Is a Portable Mortgage? (The Simple Version)

A portable mortgage allows you to transfer your existing mortgage — including its low interest rate — to your next home.

Think of it as taking your phone plan with you instead of signing up for a new one.

With Andover home prices often higher than the home you’re selling, this can mean big savings.

But What If the New Andover Home Costs More?

This is the most common scenario in Andover/North Andover, where families often move from:

• Townhomes → larger colonials

• Starter homes → new construction

• Smaller lots → larger conservation-area lots

Here’s the simple explanation:

1. Your existing mortgage transfers over

Your current balance and your low rate move to your new home.

2. You borrow extra money to cover the price difference

This extra amount is given at today’s interest rate.

3. The lender blends the rates

Your final mortgage becomes a blended rate — a mix of your old low rate and the new, higher rate.

- Still significantly cheaper than getting a brand-new mortgage
- Still allows you to upgrade within Andover/North Andover
- Still avoids paying early-break penalties

Example for Andover/North Andover Homeowners

Let’s say:

• Your current mortgage balance: $350,000 at 3%

• New Andover home price: $900,000

• You need: $550,000 more at 7%

Your lender blends these into a rate somewhere around 5% (simplified example).

That’s far better than taking all $900,000 at 7%.

This is why portability is becoming a major strategy for move-up buyers in Andover.

Why Porting a Mortgage Makes Sense in Andover/North Andover

1. Home prices are high — retaining a low rate is valuable

With both towns seeing some of the strongest price appreciation in the Merrimack Valley, locking in savings matters.

2. Inventory is tight — staying flexible helps

Buyers often need to act quickly, especially near:

• High-ranking school districts

• Commuter-friendly routes (93, 495, 114)

• Conservation neighborhoods

3. Many local homeowners have excellent historic rates

This is especially true for those who bought between 2019–2021.

Should You Consider a Portable Mortgage?

Portable mortgages are smart for you if:

• You want to move within Andover/North Andover

• Your current interest rate is much lower than today’s rates

• You want to avoid breaking your mortgage early

• You plan to buy a more expensive home

They may be less helpful if today’s rates fall far below your existing rate — but that’s not the market we’re in today.

A Smarter Way to Move in Andover & North Andover

Understanding how mortgages work — and how portable mortgages can help — empowers homeowners to move confidently, even in today’s higher-rate environment. With many Andover and North Andover homeowners sitting on incredibly low interest rates, portability offers a smart, cost-saving way to:

* Upgrade
* Relocate
* Stay competitive in bidding
* Lock in long-term financial stability

If you want this blog customized even further (luxury buyers, investors, downsizers, or young families), I can refine it.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA