selling a house with a mortgage

40% of homeowners are mortgage-free. But the rest of the population faces 15 to 30-year mortgages, and evidence shows that mortgage rates are rising.

A lot can happen in 15-30 years, which could have you considering putting your home on the market before you’ve paid it off in full.

Selling a house with a mortgage is very possible and more common than you might think. Of course, there are some important things to consider before you take the first step. And we have a handy guide to help you plan your next move.

Can You Sell a House with a Mortgage?

Can you sell your house before paying off the mortgage? The simple answer is yes—if the value of your home is higher than what you still owe on your loan.

An important resource at this early stage is your mortgage lender. Get in touch to request a quote about your payoff status. Once you have this figure, you’ll have an idea of the ideal selling price in order to pay off the rest of your mortgage.

Consider Timing and Prepayment Penalties

You’ll also want to consider other factors like timing and prepayment penalties. Make sure you know what’s going on in the local real estate and mortgage market.

If you’re planning to buy a new home, you may have to put a new mortgage application on hold until you’ve sold your current home.

You should also review your current loan paperwork to see if there’s any mention of a prepayment penalty. If this clause is included, you’ll owe a fee for selling your home before you pay in full. This is usually a percentage of your mortgage balance or it could be a flat rate, depending on your lender.

What Happens to Your Mortgage When You Sell?

Are you wondering what happens to your mortgage when you sell your home?

If you decide to sell your home, you’re still on the hook for mortgage payments while it’s on the market. And if your mortgage agreement includes a prepayment penalty, you’ll owe that fee in addition to your final mortgage payment.

In rare cases, your lender might consider an assumed mortgage. That means that a prospective buyer could take over your mortgage if they’re in good financial standing.

Selling a House with a Mortgage—Fast

If you’re in a time crunch or a pinch, there is another way to sell a house quickly. You could work with our real estate investment company to fast-track the process.

When you choose this approach, you won’t have to deal with staging your home and preparing it for showings. You’ll also be able to avoid a potentially long selling process and benefit from a payout in as little time as possible after selling.

Learn More About Your Options

There are many considerations to weigh when selling a house. And selling a house with a mortgage can come with another layer of complications and obstacles.

Contact us to learn more about how we can help you sell your house quickly and move forward in good standing and with minimal worries.