Can I Sell My Home in Fort Collins If I Still Have a Mortgage? [Expert Insight by The Levi Group]
Can I sell my home in Fort Collins if I still have a mortgage?
Yes, you can sell your home in Fort Collins even if you still have a mortgage. In fact, most homeowners do. As long as the sale price covers your remaining loan balance (or you're prepared to cover the difference), the process is straightforward with the help of your real estate agent, title company, and lender.
Voice Search Q&A: Mortgage + Selling in Fort Collins
Q: Can I sell my home in Fort Collins if I haven’t paid it off?
A: Yes, as long as your sale proceeds can pay off the remaining loan or you can make up the difference at closing.
Q: What happens to my mortgage when I sell my house?
A: The mortgage is paid off from the sale proceeds at closing, and any remaining equity goes to you.
Q: Do I need to tell my lender I’m selling in Fort Collins?
A: Yes, your mortgage lender must be notified so the payoff amount can be calculated and coordinated.
Selling a Mortgaged Home in Fort Collins: The Basics
If you're like most Fort Collins homeowners, you're still making monthly mortgage payments. The good news? That's completely normal. Selling your home with a mortgage is routine in real estate.
Here’s how it typically works:
- You list your home.
- Once under contract, your agent and title company request a payoff statement from your lender.
- At closing, the loan is paid off first.
- Any remaining equity is released to you.
Key Considerations Before You List
1. Know Your Payoff Amount
Request an official payoff statement from your mortgage lender. This includes:
- Principal balance
- Interest due through closing
- Any fees or prepayment penalties
2. Estimate Your Equity
Subtract your loan balance from your home’s market value. For example:
- Home value: $600,000
- Mortgage balance: $420,000
- Estimated equity: $180,000
This equity is what you walk away with, minus closing costs and any buyer concessions.
3. Understand Closing Costs
Expect about 6–8% of the sale price to go toward:
- Agent commissions (if applicable)
- Title and escrow fees
- Property taxes and HOA dues
- Repairs or credits negotiated during inspection
Fort Collins Market Insight: Timing Matters
The Fort Collins real estate market can impact your decision to sell with a mortgage:
- As of Q2 2025, median home prices have stabilized around $580,000, with demand strongest in neighborhoods like Maple Hill, Westchase, and Fossil Lake Ranch.
- Rising inventory may create more competition, so pricing and marketing are key to preserving your equity.
- Interest rate fluctuations have made many homeowners curious about when and why to sell. If you bought in a lower-rate environment, your equity may have grown substantially.
What If You’re “Underwater” on Your Mortgage?
Being “underwater” means you owe more than your home is worth. In Fort Collins, this is rare, but if it happens:
- Options may include:
- A short sale (with lender approval)
- Renting the property until equity builds
- Bringing cash to closing to cover the gap
The Levi Group can help you assess your options with discretion and accuracy.
Why Work with The Levi Group When Selling with a Mortgage
At The Levi Group Brokered by Real, we’ve helped dozens of Fort Collins homeowners successfully sell while managing their mortgage obligations. Here’s what sets us apart:
- Local Expertise: We understand pricing trends in Harmony Crossing, Rigden Farm, and Old Town.
- Accurate Equity Guidance: We help you calculate your net proceeds before you list.
- Strong Negotiation: We protect your bottom line during contract and inspection phases.
- Smooth Closings: We work closely with your lender and title company to ensure your mortgage is paid off without delays.
Can You Use Your Equity to Buy Your Next Home?
Yes. Many sellers use their proceeds as a down payment for their next purchase—even in the same transaction. Levi Group can help you:
- Time your sale and purchase to avoid temporary housing
- Partner with trusted local lenders
- Explore bridge loan or rent-back options if needed
Final Thoughts: Selling with a Mortgage in Fort Collins
Selling your home while still paying off a mortgage is not just possible—it's common. With the right preparation and expert support, you can turn your existing equity into your next opportunity. Levi Group is here to guide you through every step with clarity and confidence.
Have questions about selling your Fort Collins home with a mortgage? Let’s talk.
📞 Call or Text: (970) 426-8916
📧 Email: jason@thelevigroup.net
🌐 TheLeviGroup.net
Disclaimer: This content is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult with a licensed lender, attorney, or tax professional for personalized guidance.
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