Does the seller get the down payment or does the bank?
2007-08-30 08:56:01 · 4 answers · asked by L B 1 in Business & Finance ➔ Personal Finance
Whomever is the owner / seller .
If the seller does not have outstanding debt with the bank , they will get it .
If the bank holds more debt than the selling price or already has the property in their REO dept , then the bank will take all proceeds .
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2007-08-30 09:02:32 · answer #1 · answered by kate 7 · 0⤊ 0⤋
when you get a mortgage, the mortgage pays off the house in full for you. when you make a down payment it goes to the bank as a down payment on your loan. after that when you make payments you are basically paying the interest on your loan( when you first start out making payments on a mortgage which are typically 30 years loans about 90% of the payment is towards interest and the other 10% towards your principle. how ever as you keep making payments it starts to reverse and eventually you are making 90% towardes the principle and 10% towards interest) (principle means the actual money they leant you), so unless you are making extra paments towards your principle on the loan it will take the full 30 years to pay off. if you can afford to make the extra principle payments, do it. it can lower the length of time you are paying the loan back. ex: if you take one extra payment towards your loan a year you can pay it back in 22 as opposed to the 30. i hope i have been helpful, good luck.
2007-08-30 09:24:47 · answer #2 · answered by browneyedgirl482 2 · 1⤊ 0⤋
The seller gets all the proceedes to lower the loan amount
2007-08-30 09:03:32 · answer #3 · answered by wizjp 7 · 0⤊ 0⤋
I live in Florida and here we have the title companies who have escrow accounts hold the escrow until closing. The most neutral party is the one you want to hold your escrow. The bank may want to hold it but God forbid something happens between contract and close you can kiss that money good-bye!
2007-08-30 09:03:16 · answer #4 · answered by Free Thinker 6 · 0⤊ 0⤋