E*Trade Offers Portable Mortgage

A new program introduced by E*Trade Group Inc.'s E*Trade Mortgage, Menlo Park, Calif., will enable consumers to lock in an interest rate now and transfer it to the next home they purchase, instead of paying off the old loan and applying for a new loan at potentially higher rates.The company says its Mortgage on the Move program will only be available for a limited time, but will be offered nationwide. E*Trade said it expects this program to drive overall purchase-money product volume for E*Trade Mortgage. While popular in Canada, the concept of a portable mortgage has yet to catch on in the United States, though homebuilders hope that it will. After refinancing into a lower-interest-rate loan, borrowers are often hesitant to trade up to a larger home if it means paying a significantly higher interest rate on their next loan. This often translates into slower new home sales. E*Trade can be found on the Web at http://www.etrade.com.