Can I Sell My Long Island Home If I Still Have a Mortgage?

Most Long Island homeowners sell their homes before their mortgage is fully paid off. Having a remaining loan balance does not prevent you from selling, but understanding how the payoff works ahead of time helps you plan clearly and avoid last-minute surprises.

Yes, You Can Sell With an Existing Mortgage

If you still owe money on your mortgage, the loan is paid off as part of the closing process.

At closing:

  • Your remaining mortgage balance is paid from the sale proceeds

  • Any remaining funds go to you after closing costs

  • The lender releases the lien and ownership transfers cleanly

Eric Berman REALTOR® helps sellers estimate payoff amounts early so expectations are clear from the start.

How to Find Out What You Owe

Before listing your home, it is smart to request a payoff statement from your lender.

This statement shows:

  • Your current loan balance

  • Daily interest accrual

  • Any prepayment penalties, if applicable

Eric reviews these numbers with sellers when planning pricing strategy and timelines.

What If I Owe More Than My Home Is Worth?

If your mortgage balance is close to or exceeds your home’s value, options may still exist.

Possible paths include:

  • Pricing strategically to cover the payoff

  • Bringing funds to closing

  • Exploring lender-approved alternatives

Each situation is different, and timing plays a major role.

How Mortgage Payoff Affects Your Net Proceeds

Your final proceeds depend on several factors, including:

  • Sale price

  • Remaining mortgage balance

  • Closing costs and taxes

  • Any negotiated credits or concessions

Eric provides sellers with estimated net sheets early in the process so there are no surprises later.

Selling and Buying at the Same Time

If you plan to buy another home after selling, your mortgage payoff affects:

  • Down payment availability

  • Loan qualification

  • Timing your next purchase

Eric helps sellers coordinate both transactions so the transition stays smooth and well-timed.

Final Thoughts

Having a mortgage does not complicate selling. Lack of preparation does. With clear payoff information and a smart strategy, most Long Island sellers move forward confidently and close without issues.

Eric Berman REALTOR® helps sellers understand the full financial picture from listing through closing.

FAQs

Will my mortgage automatically be paid off when I sell?
Yes. The payoff is handled at closing. Get help reviewing your numbers 👉 https://www.theericbermanteam.com/contact-us

Can I sell my home if I haven’t lived there long?
Yes, though your proceeds may be limited. Discuss your options 👉 https://www.theericbermanteam.com/contact-us

What if my sale price barely covers my mortgage?
Careful planning is essential. Eric can help you evaluate next steps 👉 https://www.theericbermanteam.com/contact-us

Do I need lender approval to sell my home?
Not if the loan is paid in full at closing. Learn more 👉 https://www.theericbermanteam.com/contact-us

How does selling affect buying my next home?
It impacts timing and financing. Plan ahead with Eric 👉 https://www.theericbermanteam.com/contact-us

Eric Berman, REALTOR®
Compass Greater NY
917-225-8596
eric@ericbermanre.com
www.theericbermanteam.com