Can You Sell A Home With A Mortgage?


If you’re a homeowner pondering the possibility of selling your house, you might find yourself wrestling with a common question: Can you sell a home with a mortgage? It’s a widespread belief that a mortgage chains you to your property until every last penny is paid off. However, the reality is far more flexible and, dare we say, optimistic. Selling a home with a mortgage is not only possible but might be simpler than you anticipate, with the right approach and knowledge at your disposal.

Understanding the Basics

What Does It Mean to Have a Mortgage?

A mortgage is essentially a loan from a bank or financial institution that enables you to purchase a home. Over time, you repay the loan, plus interest, typically over 15 to 30 years. Until you’ve paid off the mortgage entirely, the lender holds an interest in your home.

The Role of Equity

Equity is the portion of your home that you truly “own” — the difference between your home’s market value and the outstanding balance of your mortgage. Higher equity means more profit from the sale that goes directly into your pocket, making understanding your home’s equity crucial when planning to sell.

How to Sell a Home With a Mortgage

  1. Contact Your Mortgage Lender: The first step is to get in touch with your mortgage lender to request a payoff amount. This figure represents how much you need to pay to settle your mortgage in full at the time of sale.
  2. Determine Your Home’s Value: Knowing your home’s market value is key. You can get a good estimate through a professional appraisal or by comparing your home to similar properties recently sold in your area.
  3. Consider the Costs of Selling: Selling a home isn’t free. Be prepared for expenses such as agent commissions, which can range from 5% to 6% of the sale price, and closing costs, which vary by location and situation.
  4. Selling Strategies for Homes with Mortgages: You have a few options for selling a home with a mortgage. A traditional sale through the real estate market is common, but if you’re looking for a quicker, hassle-free sale, you might consider selling to cash home buyers or exploring home trade-in programs.

We can close quickly! Get an easy, no-nonsense cash offer for your property today!


Overcoming Challenges

What If You Owe More Than Your Home Is Worth?

For those with underwater mortgages, options like a short sale, where the lender agrees to accept less than the mortgage balance, or seeking a loan modification, might be viable solutions.

Transferring the Mortgage

Transferring a mortgage to a buyer is generally not feasible due to the “due on sale” clause in most mortgage agreements. However, alternatives like assuming the mortgage might be possible in rare instances.

The Benefits of Selling Your Home with a Mortgage

  • Access to Equity: Selling your home can unlock the equity you’ve built up, providing a financial boost that can be used to pay off debts, invest, or purchase your next home.
  • Moving on to Your Next Home: Besides the financial aspect, selling your home opens the door to new possibilities and adventures in a new home that better suits your current needs and desires.


  • Can I sell my home with a mortgage before the fixed period ends? Yes, but be aware of any prepayment penalties.
  • What happens if I sell my home for more than the mortgage balance? The excess is your profit, minus any selling costs.
  • How does selling a home with a mortgage affect my credit? If handled properly, selling your home shouldn’t negatively impact your credit score.

CT Homes Makes Selling Your House Easy

Selling a home with a mortgage is not just feasible; it’s a step that can lead to significant financial and lifestyle benefits. With careful planning, understanding, and the right support, you can navigate this process smoothly and emerge on the other side ready for your next adventure. If you’re contemplating selling your home but are concerned about your mortgage, remember that many have successfully walked this path before you. With a positive outlook and actionable advice, selling your home with a mortgage is well worth the work.

At CT Homes, we don’t mandate a home inspection or appraisal to make our cash-as-is offer. For a smooth and stress-free property transaction, turn to CT Homes. Learn more about CT Homes’ simple as-is cash offers today!