What Happens to Your Mortgage When You Sell Your Port Washington Home?

What happens to your mortgage when you sell your Port Washington home?
When you sell your home, your remaining mortgage balance is typically paid off using the proceeds from the sale. But depending on your equity, payoff amount, and timing, there are a few things you should be aware of.

Your Mortgage Is Paid Off at Closing

In nearly all standard home sales, the first thing that happens at closing is your lender is paid the remaining mortgage balance. The title company or attorney handles this payoff using funds from the buyer’s payment.

You’ll receive whatever is left over, minus additional closing costs.

Example:

• Sale price: $1,100,000

• Mortgage payoff: $600,000

• Seller closing costs (including commission, taxes, attorney): $50,000

• Net to seller: ~$450,000

What If You Owe More Than the Home Is Worth?

If your mortgage payoff is higher than the sale price, it’s called being "underwater."

In that case, you’ll need to cover the difference out of pocket or negotiate a short sale with your lender. This situation is rare in Port Washington’s current market, but not impossible.

Can You Transfer Your Mortgage to the Buyer?

In most cases, no. Traditional mortgages are not assumable.

The buyer gets their own mortgage (or pays cash), and your existing loan is paid off and closed out.

Some VA and FHA loans are assumable, but those are exceptions and come with conditions.

Timing: Selling Before Your Payoff Date

You don’t have to wait until your mortgage is fully paid off to sell. Your loan can be paid off any time—you just need a payoff quote from your lender, which includes:

• Remaining balance

• Accrued interest

• Any prepayment penalties (rare in NY)

Eric Berman, REALTOR, coordinates with your lender and title company to ensure everything is accurate and on schedule.

What If You Have a HELOC or Second Mortgage?

If you’ve taken out a Home Equity Line of Credit (HELOC) or second mortgage, those balances must also be paid off at closing.

The title company ensures that all liens are satisfied before the buyer receives a clean title.

Pro Tip: Know Your Net

Understanding your estimated net proceeds is key to making smart decisions.

Eric Berman helps Port Washington homeowners prepare by providing a detailed seller net sheet that includes:

• Estimated payoff

• Closing costs

• Net cash proceeds after the sale

Final Thoughts

Your mortgage doesn’t get in the way of selling—it just needs to be accounted for.

With the right preparation and a trusted agent like Eric Berman, selling your Port Washington home and settling your mortgage is a straightforward process.

Planning to sell in Port Washington?
Contact Eric Berman today to get your personalized net sheet and start the home selling process with clarity.

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Wondering what happens to your mortgage when you sell a home in Port Washington? Learn how payoffs work, what to expect, and how Eric Berman can help.