A mortgage is simply a contract for repaying a loan. Therefore there are very specific terms spelled out and they are quite inflexible. Generally if a borrower wants to change one or more of the terms of the loan, they must refinance the mortgage, in essence creating an entirely new mortgage.
The current housing and financial crisis has left many Americans with no choice other than to sell their home or risk foreclosure. Many owners find themselves owing more money than their home is worth. Many of these owners have loans with favorable terms that they do not want to lose and so the question arises whether they can sell the home yet retain the current mortgage
This is in fact possible, if you have taken out what is a called a portable mortgage. These are mortgages that will transfer from one house to another. The biggest advantage this gives you is that you do not have to pay closing costs on the new home since you have already paid them on the previous one. Therefore you will be better able to afford another home since your down payment can be greatly enhanced since there are no closing costs.
If the matter of keeping a low interest rate mortgage is important, you should look for a mortgage called an assumable mortgage. The difference between a portable mortgage and an assumable mortgage is that assumable mortgages are handed over to the buyer of your home. If interest rates have risen since the mortgage was established, this will be an attractive selling point for your house. The only problem that might arise is if the mortgage does not cover the full price of the home, leaving the buyer with the need to find an alternate source of funding to cover the difference.