Can I move before my mortgage is paid off?

can i sell my house before my mortgage is paid off


If you’re considering selling your home, you’re likely wondering, “Can I move before my mortgage is paid off?” Not only is the answer, yes, but you can buy another house at the same time too!

But we are sure you have loads of other queries regarding this scenario. Let’s dive into selling your home before your mortgage is paid off!



How is my mortgage paid off when I sell my house?

In Louisiana, you typically use a title company to assist with the transaction. The title company will gather your loan information from you and contact your mortgage servicer directly. From there, they will find out what the payoff of your mortgage is for the closing date we have scheduled on your contract.

When the time comes to close on your home, the title company will overnight the money to your mortgage company and pay off the remaining balance. If you’re selling the house for more than your current mortgage, any remaining money will be given to you in the form of a check. (or wired to your bank account)

If you’re wondering where the money comes from, you’re not alone! The buyer’s mortgage company sends the funds to the title company. The title company then disperses the money to you after they have paid off your mortgage, given out real estate commissions, and taken their fees as well.

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What if I’m buying a new house at the same time? 

If you’re buying a new home while selling you’re current house – you will likely need the profit from your sale to use as a downpayment. This is a VERY common scenario, so have no fear!

The title company will apply whatever profit (you don’t have to use all of it) you made from your previous house towards the downpayment of your new house. Your mortgage lender will help you decide if you need to use all or some of the proceeds from your other sale toward your new home.

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How do I know how much money I will make from my house sale? 

There are a couple of days for this to be done. You can have your real estate agent work up the hypothetical numbers based on what they think your house will sell, and then they will deduct commissions, your closing costs as a seller, and your mortgage payoff amount.

However, the better way to handle this is to have your mortgage lender work out the numbers. They will be in close connection with the title company and know the fees down to the penny.

Seller closing costs will vary depending on your parish because of when property taxes are paid.



Ready to sell your home and get a new one? Contact us! 


What is a contingent offer?


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