something u pay off to own your own home? right?
so after u pay it off ,the home is yours & no more payments to anyone??
do u still have to pay for the land??
2007-01-12 01:36:53 · 8 answers · asked by forest lover 2 in Business & Finance ➔ Renting & Real Estate
After the mortgage is paid in full you acquire Title Deed to your property at which time you fully own the house and land. Unfortunately you will be burdened for the rest of your life with property taxes that will increase in time and never go away. In fact the more you improve your property the higher the taxes go. If you get a storage shed or a built in pool the taxes will go up. Basically it's local government collect the profit on you home in advance. If you bought a $110,000 home and paid $1000 a month mortgage then in 30 years you would have spent out of your pocket a total of $360,000 for the home that you borrowed $110,000 to buy. Add taxes on average about another $140,000 in 30 years and you have spent a total of $500,000 for the $110,000 home.
Isn't home ownership wonderful?
2007-01-12 01:52:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A mortgage is a loan with collateral. meaning that a bank loans you the money for the house but the house is collateral. Meaning if you don't pay for the house they take it from you and sell it to get their money back. Most real estate transactions include the land the home is on and is spelled out in the real estate purchase contract. Once you pay off the mortgage you own the house and land. However, there are still taxes to be paid on the property and if you don't pay them then the city or county can take possession of the property and evict you.
Not all homes are sold with the land but you shold know this when you purchase it.
2007-01-12 09:53:43 · answer #2 · answered by PRS 6 · 0⤊ 0⤋
Think of a mortgage as a really big loan from the bank. The home and land are included in the total loan. After paying off the mortgage, the loan is paid in full, you own the home and land.
This is for a free-standing home only. For a condo, you don't own the land.
2007-01-12 09:44:53 · answer #3 · answered by Enchanted 3 · 0⤊ 0⤋
A mortgage is a loan for land and/or buildings. The bank actually owns it until you pay it off. Once paid off though the only thing you owe is taxes.
2007-01-12 09:40:25 · answer #4 · answered by Glennroid 5 · 1⤊ 0⤋
after your mortage is paid off, you wont make payments for the loan anymore, but you still will have to pay your land taxes every 6 months, mine are about $2200 a year
2007-01-12 09:46:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Just the Taxes for the land
2007-01-12 09:40:05 · answer #6 · answered by caretaker 5 · 0⤊ 1⤋
not if the land was part of the house in the contract... which in most cases, yes you own the land as well.
2007-01-12 11:01:51 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Mortgage is a credit from banks.
2007-01-12 09:40:02 · answer #8 · answered by thabomaphakisamichael 1 · 2⤊ 0⤋