Yes! You can absolutely sell a home before the mortgage is fully paid off. In fact, many homeowners do this when they move or need to cash out of their home equity. When you sell your house, the proceeds from the sale are used to pay off your remaining mortgage balance, and you keep the rest (after fees and closing costs).
However, selling with an outstanding mortgage does require careful planning. Here’s what you need to know:
Steps to Sell a Home With an Active Mortgage
1. Find Out Your Mortgage Payoff Amount
Your first step is to contact your lender and request a mortgage payoff statement. This will tell you exactly how much you owe, including interest and any fees. Your loan balance is not the same as your payoff amount, so be sure to get an official figure.
2. Determine Your Home’s Market Value
Knowing how much your home is worth is crucial. If your home is worth more than what you owe, you’ll have positive equity, meaning you can sell and walk away with extra cash. If your home is worth less than what you owe, you may need to explore other options (like a short sale).
To determine your home’s value, you can:
✅ Research recent sales in your area
✅ Get a professional appraisal
✅ Work with a real estate expert or cash home buyer
3. Factor in Selling Costs
Selling a home comes with expenses, including:
- Real estate agent commissions (typically 5-6%)
- Closing costs (2-5% of the sale price)
- Repairs and upgrades (if needed)
If you don’t want to deal with these costs, selling your home as-is to a cash buyer may be a better option.
4. Decide How You Want to Sell
You have a few options when selling your home:
🔹 Traditional Market Sale – Listing your home with a realtor can take weeks or months, and you may have to make repairs and stage your home.
🔹 Sell As-Is for Cash – Selling to a professional home buyer like Moe Buys Homes allows you to skip the repairs, fees, and lengthy process.
🔹 Short Sale (if You Owe More Than Your Home’s Value) – If you’re underwater on your mortgage, a short sale may be an option, but it requires lender approval and may impact your credit.
5. Use the Sale Proceeds to Pay Off Your Mortgage
Once your home is sold, the proceeds will go toward paying off your mortgage. If you’re selling for more than what you owe, the remaining balance is yours to keep.
The Fastest Way to Sell a Home With a Mortgage
If you need to sell quickly and avoid the hassle of repairs, showings, and agent fees, working with a cash home buyer is the best solution.
At Moe Buys Homes, we make selling simple:
✅ Get a Cash Offer in 24 Hours – No waiting, no stress.
✅ Sell As-Is – No Repairs Needed – We buy houses in any condition.
✅ Close in as Little as 7 Days – Skip the long selling process.
✅ No Agent Fees or Closing Costs – Keep more money in your pocket.
If you still have a mortgage but need to sell fast, Moe Buys Homes is here to help. Contact us today to get a free, no-obligation cash offer!