I am thinking of buying a house on a mortgage, but I am quite reluctant to do so. Do I have to keep the house through the full term of the mortgage, or can I still sell it midway through?
2007-09-17 12:25:23 · 17 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
you can sell it at anytime, but once you sell it the proceeds from the sale will first go to payoff any loans (mortgages, equity loans, lines of credit) that are against the property before you receive any of the proceeds yourself
2007-09-17 12:30:59 · answer #1 · answered by lidlwig 2 · 3⤊ 0⤋
You do NOT have to keep the house through the full term of the mortgage.
If you decide you want to sell the house, you sell it, and pay off the mortgage using the money that you got from selling the house.
There are many, many people who sell midway through.
2007-09-17 19:34:21 · answer #2 · answered by JustPeachy !!! 5 · 4⤊ 0⤋
A large percentage of homes are sold before the full term of the mortgage. As part of the sale closing process, the mortgage is paid off from the money the new buyer is paying for it.
It gets a lot trickier if the value of the house goes down to where your mortgage balance is higher than the value of the house.
2007-09-17 19:44:19 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You can sell anytime you want to. Best to keep it a few year to gain some equity or else you will lose a bundle. When you decide to sell, the bank loan/mortgage gets paid off first and the balance/equity is yours.
2007-09-17 19:32:08 · answer #4 · answered by Lori E 4 · 3⤊ 0⤋
No you do not have to keep your house. You can sell it and the profit from the sale will pay off the debt and anything over what you owe on the loan will go to you....Also, if you keep your house for a few years it hopefully goes up in value. That is called equity.
2007-09-17 19:32:34 · answer #5 · answered by Sammy&Pete 3 · 3⤊ 0⤋
yes, you "can" sell it midway through. When you pay on a house you pay more toward the house from the start than you would toward the end (and monthly you pay PITI...principal, interest, taxes, insurance). People usually don't work toward paying off their house sooner because you get money back from your IRS taxes each year when you own a home.
2007-09-22 01:11:54 · answer #6 · answered by sophieb 7 · 0⤊ 0⤋
You can sell it any time you want.
You just may have to wait until you build some equity in the house first.
You need to do a LOT of research, you're nowhere near being ready to buy if you're asking these kinds of questions. The more educated you are, the better your decision will be.
2007-09-17 19:37:36 · answer #7 · answered by Roland'sMommy 6 · 1⤊ 0⤋
Yes, you can sell it. You just have to pay the loan off with the proceeds of the sale. For example, if the home cost you 500k and you sold it a year later for 600k, and your loan was an interest only loan (no principal pmnt) then you would pay your lender 500k and keep the 100k equity.
2007-09-17 19:32:03 · answer #8 · answered by Mommy 3 · 3⤊ 0⤋
No you can sell it, and then pay the mortgage company the amount you borrowed , and if there is anything left over, that is your profit.
2007-09-17 19:36:07 · answer #9 · answered by ijokey2000 2 · 0⤊ 0⤋
Where are you getting your information? Practically every home owner in America has a mortgage. Do you really think they're paying off this debt before putting up a For Sale sign? You need a few lessons in the world of finance, my friend.
2007-09-17 19:33:17 · answer #10 · answered by goaltender 4 · 1⤊ 4⤋