Can I Sell My House Even If The Mortgage is Not Fully Paid?

Supposing you just moved into your non-rental Georgia house less than two years ago, and you receive another call from your manager saying that you’ve been promoted to the position you’ve wanted to have. But the catch is, the job requires you to relocate to the opposite side of the state.  Can you say yes?

Or perhaps you’ve learned that the house/community you live in is not as great as it seemed the first time. Do you have an option to move out immediately?

It might be overwhelming to think about it, especially when you have a family to consider. But to hopefully ease your burden, you don’t have to worry about your current house at all, even when you’ve just started paying your mortgage. You can put it again for sale and have your buyer cover the remaining mortgage.

We are not saying, though, that doing it is as easy it sounds since you’ll have to find a buyer who would either agree to your mortgage terms or would be willing to go through a refinancing application.  However, the chances of you selling your home with a mortgage are still there.

excited to sell house with mortgage

Here are the primary things to consider when you want to sell your house with an ongoing mortgage, with or without a real estate agent:

Know How Much You Still Owe Your Lender

To estimate how much you can sell your house for, knowing how much you still owe on your mortgage is one of the first things to do. You have to talk to your mortgage lender and ask about your pay-off amount. The pay-off amount is the total amount you owe, including the interest for the remaining years and unpaid fees. Once you have this, ask your lender what happens if you need to transfer ownership of the house (a.k.a, sell it). They’d most likely calculate a pre-payment penalty and charge it on top of your pay-off amount.

A pre-payment penalty is a fee that mortgage lenders impose on borrowers who wish to pay their entire mortgage in advance. You might wonder why these lenders charge penalties for early payment. Don’t they want their money back as soon as possible? The simple answer to that is, these lenders earn profit through interests. The longer you repay your loan, the higher their profits will be. In addition, in recent years, the market hasn’t been very friendly to mortgage lenders. According to Freddie Mac’s Mortgage Survey, interest rates have continuously dropped from the 1980s.

US weekly average mortgage rates as of October 2020
Source: Forbes

If you want to get an idea of how much a pre-payment penalty is assessed, Rocket Mortgage offers a sample calculation.

But did you know that you can sell your house without being charged with a pre-payment penalty? You can ask your lender if they can waive or lower the fees. If not, you have the option to switch to another lender who doesn’t charge a pre-payment penalty (but make sure to do this before you sell your house).

Calculate How Much Your House Is Worth Right Now

Now that you know how much you still owe your lender, it’s time to calculate how much your home’s market value is. The best thing to do to know your market value is to hire a real estate agent and appraiser who can do a comprehensive market analysis. However, if you just want to get an initial estimate, here are some valuation tools to check out:

Take note that online valuation tools give more of a rough estimate based on your location. They may not consider the actual condition of your house and other particular details (such as renovation costs). To support your rough estimate, you can also check out recently sold homes in your area. This can be more time-consuming, but it informs you how much recent buyers are willing to pay considering the condition of the recently sold house.

Decide on Where to Sell Your House 

If your home still has an ongoing mortgage, you have the option to either list it back on the market or sell it for cash to us at Spire Property Solutions.  Selling it on the market will take more time, though. If the market is down right now and you find yourself stuck in an underwater mortgage, you’ll need to wait longer until the market gets back up.

The good news is, if you want to sell your house and still gain a little equity even when the market is down, you don’t have to break extra sweat.  You can sell your property to us here at Spire. Even if you still have a mortgage, we can take care of that for you and buy your house for cash. We can pay as fast as you want to have the money. The only question we have for you is, how soon do you want to sell your Georgia house?

Request a quote from us now by calling  (678) 318 – 1801!

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