ou've decided to make the institution is going to be paid
plunge and sell you home. out of the proceeds of the sale
More than a few people have before you see anything. As a
innocently asked me, "What result, it is critical that you
happens to my mortgage when I calculate in the loan repayment
sell my home?" amount when determining if it
makes sense to sell a home. If
What Happens to My Mortgage When you have a home worth $300,000
I sell My Home and owe $280,000 on the mortgage,
you are going to realize little
If you own a home, you or no profit after the costs
undoubtedly are carrying a associated with the sale and
mortgage on it. A mortgage is probably shouldn't sell it.
simply a loan from a bank or
financial institution for If you have plenty of equity
percentage of the value of the built up in the home, your
home, which you pay to the person mortgage can still end up costing
you purchased the home from when you more than you originally
you bought it. Depend on the type expected. Many modern mortgages
of mortgage you have, the amount have restrictive penalties built
due on the loan should have into them. These penalties are
decreased during the time you designed to encourage you to hold
lived in the home and made onto the home for a set period of
monthly payments. time, usually a couple of years,
so the bank can recover a certain
When you go to sell your home, amount of interest up front. Put
the simple question is what another way, the bank is trying
happens to the then due balance to lock in a certain amount of
on the mortgage? The simple profit on the loan.
answer is the financial
When it comes to these State law often influences these
restrictive penalties, lending issues, so you need to read your
institutions get pretty creative. mortgage loan documents closely.
Many will include a penalty if
you sell or refinance the Regardless, you mortgage is going
property within the first two to be paid off as part of the
years of the loan period. The sales process. The exact amount
penalties can be anything from will depend upon the nature of
the equivalent of three months of your loan.
payments to a preset amount or
even a percentage of the loan.
About the Author:
Raynor James is with the FSBO site - http://www.fsboamerica.org - FSBO homes for sale by owner. Visit our "sell my home" page - http://www.fsboamerica.org/seller.cfm - to sell your house yourself with a free 1 month listing.
Source: www.isnare.com
