YOUR MORTGAGE, EXPLAINED
How much cash will I have after selling my home?
Start with a realistic sale price, then subtract the mortgage payoff, other liens and the actual selling and settlement costs. The result is estimated proceeds, not a guaranteed deposit. Use several sale prices and keep a separate reserve when deciding how much of the proceeds to put into the next home.
By Eric Hamilton · Published September 17, 2026
What to remember
- Use a dated payoff amount.
- Include all liens and transaction costs.
- Keep a reserve and a lower price scenario.
Use a payoff, not just the statement balance
Request a payoff statement for the expected closing date through your verified servicer. The amount needed to release the loan can differ from the principal shown on a monthly statement. Ask the settlement professional to identify all liens and transaction adjustments.
Sources: 1
Build a transaction specific estimate
Ask your real estate and closing professionals for an itemized estimate. Compensation, transfer charges, taxes, credits and other costs depend on the transaction and local rules. Do not treat a single national percentage as your exact selling cost.
A hypothetical proceeds calculation
A $500,000 sale less a $280,000 payoff, $15,000 second lien and $35,000 in assumed costs and adjustments leaves $170,000. Those are illustrative numbers only. If the sale price were $480,000 with the same other amounts, proceeds would be $150,000.
| Item | Amount |
|---|---|
| Sale price | $500,000 |
| First mortgage payoff | Subtract $280,000 |
| Second lien payoff | Subtract $15,000 |
| Assumed costs and adjustments | Subtract $35,000 |
| Estimated proceeds | $170,000 |
Do not spend the estimate before settlement
A contract can change or fail, closing can be delayed and final adjustments can differ. If buying first, verify how the purchase is funded before sale proceeds arrive. Do not assume an escrow refund arrives with the sale proceeds.
Assign the proceeds deliberately
Decide what goes toward the next home, any temporary borrowing, moving costs and accessible savings. A tax professional can address tax consequences. Estimated proceeds are cash from a transaction, not a calculation of taxable gain or investment profit.
Sources and scope
General U.S. consumer education. Loan terms, servicer rules, program requirements and state law can change the answer. Hypothetical examples are not quotes, approvals or customer results.
- CFPB: Lenders and mortgage servicers Accessed September 17, 2026
Approved for publication by Eric Hamilton on September 17, 2026.
General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.
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