How Does Selling a Home With a Loan Work in Palm Beach Gardens?

Question: How Does Selling a Home With a Loan Work in Palm Beach Gardens?

Answer: To sell home with a loan in Palm Beach Gardens, FL, you must pay off your remaining mortgage balance at closing. With guidance from Coastal Florida Homes, sellers can calculate net proceeds, manage payoffs, and complete the process smoothly.

Introduction

Many homeowners wonder whether they can sell their home while they still owe money on their mortgage. The answer is yes. In fact, most sales in Palm Beach Gardens, FL involve properties with existing mortgages. The key is to understand how payoffs are handled, how much equity you have, and what steps are necessary for a smooth closing. With a median home value of about $625,000 in Palm Beach Gardens, equity positions can vary widely across neighborhoods like Alton, Artistry, PGA National, and Mirasol. Coastal Florida Homes works with homeowners to make sure the math is clear before listing.

Step 1: Determine Your Loan Payoff Amount

• Contact your lender for a payoff statement, which includes the balance and daily interest owed.
  • Remember that your mortgage statement does not equal the payoff—interest and fees may differ.
  • Payoff statements are typically valid for 30 days.

Step 2: Calculate Your Home Equity

Equity = Current Market Value – Loan Balance – Selling Costs.

For example, if your home is worth $650,000 and you owe $400,000, with $40,000 in costs (commissions, closing costs, etc.), your equity would be $210,000.

Step 3: Work With an Experienced Agent

Coastal Florida Homes helps sellers price their homes strategically, factoring in payoff balances and net proceeds. An accurate comparative market analysis (CMA) ensures you know what to expect financially before listing.

Step 4: Manage the Payoff at Closing

At closing:
• The buyer’s funds are used to pay off your lender directly.
• Title companies handle the transaction, ensuring your lien is released.
• Any remaining proceeds after payoff and costs are wired to you.