What to Know About Selling a Home with a Mortgage in Florida

If you’re like most Florida homeowners, you still have a mortgage on your property—and that’s perfectly okay.

You don’t need to be mortgage-free to sell. In fact, most homes sold in Florida still carry an active loan at the time of closing. The key is understanding how the mortgage payoff process works and what it means for your bottom line.

Here’s everything you need to know about selling a home with a mortgage in Florida.

🏦 Step 1: Request a Payoff Statement

Before you list your home, contact your lender and request a payoff quote.

This will show:

• Your remaining loan balance
• Accrued interest up to the payoff date
• Any prepayment penalties (rare in Florida but worth checking)
• Administrative fees

💡 Tip: Request an updated payoff letter again a few days before closing, as interest accrues daily.

💰 Step 2: Calculate Your Equity

Your equity = Estimated Sale Price – Total Payoff – Selling Costs

Selling costs include:

• Agent commissions (typically 5%–6%)
• Title fees
• Transfer taxes
• Any repair credits or concessions

Your agent can help you create a net sheet to estimate how much you’ll walk away with after closing.

🧾 Step 3: Understand What Happens at Closing

At closing, the title company or attorney:

• Pays off your mortgage from the buyer’s funds
• Issues a final payoff to your lender
• Sends any leftover proceeds directly to you (via wire or check)

This is seamless when handled by professionals—but it starts with having your documents in order.

📉 What If You Owe More Than the Home Is Worth?

This is called being “underwater.” You have a few options:

• Bring funds to closing to cover the shortfall
• Request a short sale (only in hardship cases, and with lender approval)
• Delay the sale until market values rise

Michael can help evaluate the right strategy if you’re in this position.

📑 Should You Pay Down the Mortgage Before Selling?

It depends on your goals:

• If your equity is low, a small payoff might make a big difference in net proceeds
• But if you’re moving soon, it may not be worth the cash outlay

Every scenario is unique—this is where a personalized financial breakdown helps.

🛠️ What If You Have a Second Mortgage or HELOC?

Both must be paid at closing. Be sure to:

• Request separate payoff letters for each
• Inform your closing agent of all liens
• Plan for any early closure fees (especially on HELOCs)

All liens must be cleared to transfer the title to the buyer.

🏡 Can You Sell and Buy at the Same Time?

Absolutely—but it takes planning.

• Consider a leaseback agreement after closing
• Use a bridge loan or home equity loan to fund your next purchase
• Coordinate both closings with help from an experienced agent

This strategy is common in Sarasota, Bradenton, and Longboat Key—and Team Renick has done it dozens of times.

Final Thoughts

Selling a home with a mortgage is not a problem—it’s the norm.

With the right steps, smart prep, and the help of a local pro, you can confidently sell, pay off your loan, and move on to your next chapter.

📣 Let’s Talk Strategy

Want a clear breakdown of your numbers and a smarter way to sell? Let’s connect.

• 📞 Call Mike: 941.400.8735
• 📍 Explore our blog series: The Florida Life
• 🌐 Learn how we operate and why it matters: TeamRenick.com
• 🔎 Start your property search: Search.TeamRenick.com

📘 Continue Reading: Understanding Capital Gains Tax When Selling a Florida Home →