Do You Pay Your Mortgage the Month You Close Seller : 5 Key Things You Need to Know




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Do You Pay Your Mortgage the Month You Close Seller?

Buying a house is an exciting milestone in life, and one of the most significant financial decisions you will make. As a buyer, you may have wondered whether you are required to make a mortgage payment for the month in which you close as the seller. Let’s dive into this topic and explore the answer.

Understanding Mortgage Payments

Before we discuss whether you need to pay your mortgage when you close as the seller, let’s quickly understand how mortgage payments work. Your monthly mortgage payment consists of both principal and interest. It is typically due on the first of the month and covers the previous month’s interest and a portion of the principal.

Mortgage Payoff Calculation

When you decide to sell your house, your mortgage lender will send you a mortgage payoff amount. This is the exact amount you need to pay to clear your mortgage in full and complete the sale. The mortgage payoff includes the remaining principal balance, any interest owed through the payoff date, and any applicable fees or penalties.

To determine the mortgage payoff amount, you need to contact your lender and request it. They will provide you with a detailed breakdown of the outstanding balance and any additional charges involved.

The Month You Close as a Seller

Now, let’s address the main question: Do you need to pay your mortgage for the month in which you close as the seller?

The answer depends on the specific terms outlined in your mortgage agreement and the timeline of your closing. Here are two common scenarios:

1. Prepaid Interest

If your closing date falls within the first few days of the month, your mortgage payoff amount will include prepaid interest. Prepaid interest acts as a buffer to ensure that your lender receives interest for the days between the closing date and the end of the month. In this case, you don’t need to make an additional mortgage payment.

2. Closing Date Towards The End Of The Month

If your closing date is later in the month, your mortgage payoff amount will typically not include prepaid interest. This means that your mortgage payment for the month in which you close as the seller will still be due. You will need to make this payment in addition to the mortgage payoff amount.

Consult with Your Lender

It is important to consult with your lender during the selling process to understand the specific terms of your mortgage agreement. They will be able to provide accurate information regarding your mortgage payoff and any outstanding payments required at closing.

Furthermore, your real estate agent can also assist you in navigating this process and help you understand your financial obligations as the seller.

Frequently Asked Questions On Do You Pay Your Mortgage The Month You Close Seller : 5 Key Things You Need To Know

Faq 1: Can You Pay Your Mortgage The Month You Close As A Seller?

Yes, as a seller, you typically pay off your mortgage on the closing day itself. Make sure to discuss this with your real estate agent and mortgage lender to ensure a smooth transaction.

Faq 2: What Happens To The Remaining Mortgage Balance When You Close As A Seller?

When closing as a seller, you will be required to pay off the remaining balance on your mortgage. This is done with the proceeds from the sale of your home.

Faq 3: Do I Have To Continue Making Mortgage Payments After Closing As A Seller?

No, once you have closed as a seller and paid off your mortgage balance, you will no longer be responsible for making mortgage payments on that particular loan.

Faq 4: Are There Any Additional Costs Associated With Paying Off The Mortgage At Closing As A Seller?

There may be some additional costs, such as prepayment penalties or mortgage payoff fees. It is important to review your mortgage terms or consult with your lender to understand any potential charges.


As a seller, whether you need to make a mortgage payment for the month in which you close depends on the specifics of your mortgage agreement and the timing of your closing. It is crucial to reach out to your mortgage lender and get a breakdown of your mortgage payoff amount to ensure you fulfill your financial obligations and complete the sale successfully.

Remember, each mortgage situation could be different, so it’s best to speak directly with professionals involved in your sale to obtain accurate and personalized advice.

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