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Underwater Mortgage Savings Calculator

An underwater mortgage is a house loan where the amount owed is greater than what the house is worth. If an owner needed to sell their house, they would normally have to pay to sell it. But by selling “subject to” the existing mortgage, the owner can avoid having to bring any cash to closing. Continue to learn more about selling subject to.

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How To Use the Calculator


  • Seller’s Monthly Mortgage and Other Payments: Mortgage payments are made every month according to an amortization schedule. There are also associated property tax and hazard insurance payments. Input the total of all of these here.
  • Mortgage Balance: This is the amount you owe on the existing mortgage. In a traditional sale, this amount would have to be paid off at closing using the buyer’s new loan.
  • House Value: Enter the value of your house. Here’s a quick estimate.
  • Costs to Sell: The major cost is paying agent commissions, which are typically around 6% (split between the buyer’s and seller’s agents), but there are also closing costs which may be around 2%.


  • Amount Paid by Buyer: This amount will always match the Seller’s Monthly Mortgage and Other Payments amount. This is because the buyer is going to make all relevant payments on the house going forward. The house is sold and is no longer the seller’s responsibility.
  • Remaining Seller Responsibility: This amount will always be zero to highlight that the seller is no longer responsible. Yes, the loan is still in their name, but everything is being handled by the buyer.
  • Amount You Avoid Bringing to Closing: Your savings can be tremendous. They are calculated as (1) the amount you save by not paying agent commissions or other fees and (2) the difference between the value of the house and the amount you owe. You avoid bringing this money to closing to satisfy your lender because the loan is staying in place!

Benefits of Selling “Subject To”

Our underwater mortgage savings calculator provides a clear picture of what kinds of savings are available when selling a house that is underwater (or upside down) “subject to.” Keep reading to learn more about selling subject to, and contact us if you have any questions. We would be happy to help!

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