Thinking of selling new 3 yr old home?

Question

Hi all,I would like if someone can tell me if I sell my originally
purchased $110,000 home/30 YR Mortgage and maybe get an acceptable offer will I still owe the bank the rest of the balance on
the interest? Thanks All

Answer 1

No, you'll only owe the bank the principal balance on the date the sale closes. If your mortgage has a prepayment penalty you'll owe that as well if it is still in force. Most prepayment penalties expire after a few years.

Answer 2

Let's say you purchased the home for $110,000. Now you owe a balance of $100,000 (for easy calculations). If you sell your home for say $125,000, you will have $25,000 in equity. Out of that equity you will pay fees such as broker fees, attorney fees and any interest due the lender.

You only pay interest upto the day of payoff in most instances. It is possible that you have a pre-payment penalty of longer than 3 years. If this is the case you will need to pay tentatively 3-18 months of interest. You may want to call your lender and find out the terms of your loan.

Good Luck in your decision!



Thanks!
___________________________________________

CAROLINE SIMMONS
Affordable Housing Specialist - REALTOR® & Loan Officer
Solid Source Realty - Mortgage Integrity
O. 404.474.7129 C. 404.787.8685 F. 404.745.8019
T. 1.866.894.3601 E. [e-mail]
AIM/YAHOO. Caroline Simmons

Answer 3

You only owe interest up to the date of payoff, however, depending on your financing, make sure there isn't a penalty for early pay off.

Answer 4

send the details at [e-mail]

regards,
kish