You can sell your Portland home even if you still have a mortgage. At closing, the mortgage balance is paid off with the sale proceeds, and you keep the remaining equity. With guidance from an experienced local agent like YogaBug Real Estate, the process is straightforward. 

The Good News: You Don’t Have to Be Mortgage-Free to Sell 

Most homeowners in Portland still carry a mortgage when they sell. According to the Federal Reserve, over 60% of U.S. homeowners have an active mortgage. The system is designed to handle it seamlessly—your loan is simply paid off at closing.  

Step 1: Find Out Your Payoff Amount 

Your monthly statement shows your balance, but it’s not the final payoff. Interest accrues daily, so your lender will provide an official mortgage payoff statement that escrow uses at closing. 

This number is key to understanding how much equity you’ll walk away with. 

Step 2: Calculate Your Equity 

Equity is the difference between your home’s value and what you owe on the mortgage. 

Example: 

• Your Portland home sells for $540,000 (around today’s median). 

• Your mortgage payoff is $320,000. 

• After paying off the loan and transaction costs, you keep the remaining equity. 

If you’re not sure where you stand, Pam Blair and YogaBug Real Estate can provide a price analysis so you can see your potential net proceeds. 

Step 3: Consider Timing and Market Conditions 

The Portland housing market shifts seasonally. In 2025, homes are averaging 28 days on the market (RMLS), with spring and early summer being the most competitive times for sellers. 

Selling while you have equity gives you flexibility for your next move. If you’re “underwater” (owe more than the home is worth), you may need to discuss alternatives like a short sale with your lender and a real estate attorney. 

Step 4: Prepare Your Home for a Competitive Sale 

Having a mortgage doesn’t change how you prepare your home: 

• Declutter and clean for a strong first impression. 

• Tackle small repairs buyers might flag during inspection. 

• Stage or style rooms to highlight Portland lifestyle features—open layouts, outdoor living, and energy efficiency are big draws.

Step 5: Understand How Closing Works With a Mortgage 

Here’s how it typically plays out: 

1. Buyer’s funds go into escrow. 

1. Escrow pays your lender the payoff balance. 

1. Any remaining proceeds go to you. 

1. Escrow records the sale with Multnomah County (or your county). 

If you’re also buying another home in Portland, you may be able to coordinate the two closings or use a rent-back agreement to give you extra time to transition.  

Step 6: Don’t Forget About Other Liens or Fees 

In addition to your mortgage, escrow will also settle: 

• Any home equity loans or lines of credit. 

• Property taxes owed. 

• HOA dues (if applicable). 

This ensures you hand over a “clean title” to the buyer. 

Step 7: Work With the Right Agent 

Selling with a mortgage is normal, but every situation is unique. A mindful, experienced Realtor makes sure: 

• You know your numbers up front. 

• The timing of your sale aligns with your next move. 

• You avoid surprises at closing. 

YogaBug Real Estate specializes in helping Portland sellers navigate this process with clarity and calm. 

Final Thoughts 

Yes, you can absolutely sell your Portland home with a mortgage. The loan gets paid off at closing, and you keep your equity. The real key is understanding your payoff amount, market value, and next-step options so you can move forward confidently.  

Call to Action 

Thinking about selling your Portland home but still have a mortgage? Contact Pam Blair and YogaBug Real Estate today. We’ll help you crunch the numbers, understand your options, and create a smooth selling plan tailored to your needs.