Can You Sell a Home in Portland With a Mortgage or HELOC Still on It?
an you sell a home in Portland with a mortgage or HELOC still on it?
Yes, you can sell a home in Portland even if you still have a mortgage or HELOC. The balance is typically paid off at closing with proceeds from the sale, and any remaining equity goes to you.
Understanding How Mortgages and HELOCs Affect a Home Sale
If you’re thinking about selling your home in Portland, you may be wondering what happens if you still have a mortgage or a home equity line of credit (HELOC). The good news is that having a loan balance doesn’t prevent you from selling. It just means part of your closing process will include paying off those debts. The Bridge to Portland Group works with sellers like you all the time who still have a mortgage or HELOC when they list their home.
How Selling a Home With a Mortgage Works
When you sell a home in Portland with a mortgage, the process is straightforward:
Your buyer’s funds go into escrow.
At closing, the escrow company uses those funds to pay off your remaining mortgage balance.
Any money left after paying off the loan, agent commissions, and fees is your net proceeds.
This process ensures that your lender is paid in full, and you walk away with the equity you’ve built in your home.
What About Selling With a HELOC?
If you’ve taken out a home equity line of credit (HELOC), the same principle applies. The HELOC balance is paid off at closing, alongside your primary mortgage. You cannot sell the property without settling the HELOC first, since it’s secured against your home.
Sometimes, sellers with both a mortgage and a HELOC may be surprised at how much equity is left after both balances are paid. That’s why it’s important to work with a Portland real estate team like the Bridge to Portland Group to understand your net proceeds before you list.
Why Equity Matters in Portland’s Market
In Portland’s current housing market, home values remain strong. As of mid-2025, the median home price in the metro area is around $550,000, according to RMLS data. Many homeowners who purchased several years ago still have significant equity even if they haven’t fully paid off their mortgage.
For example, if your home sells for $600,000 and you owe $300,000 on your mortgage and $40,000 on a HELOC, those loans are paid at closing, leaving you with approximately $260,000 (before fees and costs). That equity can then be used toward your next home purchase or other financial goals.
Key Things to Know Before Selling
Before you sell a home in Portland with a mortgage or HELOC, keep these points in mind:
Prepayment penalties: Some older mortgages include fees for early payoff. Check with your lender to find out if this is the case with your mortgage.
Accrued interest: Expect to pay interest up to the day of closing.
HELOC draw periods: If you’re in a draw period, you may owe more at payoff than you expect.
Closing costs: In Portland, typical seller closing costs can include title insurance, escrow fees, and transfer taxes.
Why Work With the Bridge to Portland Group?
Selling a home while still paying off a mortgage or HELOC isn’t complicated, but it does require careful coordination. The Bridge to Portland Group has experience helping Portland homeowners calculate net proceeds, prepare their homes for market, and navigate negotiations with confidence.
Our team can also connect you with trusted lenders and escrow officers who will walk you through every step of the payoff process.
Bottom Line: Yes, You Can Sell With a Mortgage or HELOC
You don’t need to wait until your mortgage or HELOC is fully paid off to sell your home in Portland. With the right guidance, the process is straightforward, and your debts are settled at closing. The Bridge to Portland Group can help you understand your equity, plan your next move, and sell with confidence.
Thinking about selling your Portland home? Contact the Bridge to Portland Group today to schedule a consultation and learn how much your home could sell for in today’s market.
