If you sell your home, do you have to pay all of the interest off from a 30 year mortgage?

Question

Or do you just pay the principal off and pocket the rest of the money?

Answer 1

No, all the interest will not be paid. Only up until the point where you stop making payments. You should come out some money ahead!!

WAY TO GO!!!

Answer 2

No; You'll need to call the mortgage company and request a payoff figure; they'll compute your principal & interest up to your projected closing date and charge you that. Anything above that is paid to you with a cashiers check or applied to any other property you're buying (double closing).

The other poster is also correct that they could charge you a prepayment penalty depending in the type of mortgage you have. They'll let you know that when you request a payoff figure.

Answer 3

You only pay interest thru the day of closing. You will receive a 'payoff' statement which indicates the remaining interest due, plus the principal owing.

Answer 4

You save the interest. However, you may have a pre-payment penalty on your mortage, which is usually 6 months of interest. Check with your mortgage company before you pay them off.

Answer 5

You only pay off the principal balance.

Answer 6

WB, you just pay off the banks principle due the bank to the day of COE and pocket the appreciated value or pft on the home since you've purchased it.
The bank did not earn what is left on the mortgage yet.

Answer 7

you shouldn't have to pay the entire intererst for the 30 years... but only in some mortgage contracts do you have a pre-payment penalty... i know mine doesn't, you just pay the current payoff amount (mortgage accumulated up to that date)

Answer 8

you will pay off just whats owed to the date of close of escrow, all the rest is yours.

Answer 9

You pay off your current balance whatever that might be.