Within scenario, you'd port your financial ($150,000) into new property. However, because the the newest house is more expensive, you'll want to obtain a supplementary $150,000 to cover pricing differences. State your bank gives the additional amount in the mortgage away from 4 percent. Here is what your new home loan may look particularly:

• Ported home loan: $150,000 from the step 3 % focus
• Even more borrowing from the bank: $150,000 at cuatro % desire

When you're downsizing so you can a less expensive family, you'll be able to find yourself with excessive financing that you can use to repay section of your own home loan. However, this can trigger very early cost costs, therefore examining your lender's plan is important.