2007-09-25 08:20:28 · 7 answers · asked by beaches10000 1 in Business & Finance ➔ Renting & Real Estate
Nothing happens, as long as you don't have a pre-payment penalty on your loan. If you do, it is typically only for the first 3 years. After that, there usually is no penalty for paying your loan in full early.
2007-09-25 08:34:22 · answer #1 · answered by Mr. Knowitall 3 · 1⤊ 0⤋
If you have a fixed rate mortgage with no penalty for pre-payment, when you sell the house the current payoff will be paid from the proceeds of the buyers new loan.
Just because it is a fixed rate loan does not mean you have to pay for the interest for the entire term. The payoff would include the balance and any interest that had accrued during the month you close. So as long as you are up to date on your mortgage, that would not exceed 30- 45 days of interest.
2007-09-25 15:33:46 · answer #2 · answered by Chuck92121 2 · 0⤊ 0⤋
I assume your Mortgage is fixed for a number of years (usually 2,3 or 5) and has a 'penalty' cost if you redeem it early ?
Well, SOME Mortgage Companies will allow you to MOVE the Mortgage to your new property without imposing the Penalty Charges = this is usually called a 'Portable' Mortgage.
Others won't allow you to move during the Penalty period = so if you want to do so, you have to pay the penalty charges (which usually reduce the longer you stay with them .. so if you move say after 4 years of a 5 year penalty period you will be charged a lot less than moving during the first year).
You should read your Mortgage 'contract' (the booklet that came with the Mortgage) OR ring up & ask your Mortgage Company
2007-09-25 15:25:32 · answer #3 · answered by Steve B 7 · 2⤊ 0⤋
depends on ur mortgage. if it has penalty and for how long. if no penalty then ur in great shape sell whenever. fix rate is great for people who plan to live in a home 5 yrs + usally if u have a penalty for early payoff or (sale) it would be before the 5yrs. call ur current mortgage company. give them ur account number or loan number and they will tell u
2007-09-25 15:40:50 · answer #4 · answered by alfonsoortiz1@sbcglobal.net 2 · 0⤊ 0⤋
Nothing, unless you have a prepayment penalty clause. Read your contract and/or contact the lender directly and ask. You may be able to search their website online in the frequently asked questions.Better to be safe than sorry.
2007-09-25 15:40:57 · answer #5 · answered by Christiane 3 · 0⤊ 0⤋
you will have to pay a penalty if you want to sell your house it is worked out on how many months you have left on your fixed rate. its always best to wait if possible.
2007-09-25 15:32:58 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Probably you will ending up with a fee because you sell it before the end date.
2007-09-25 15:35:25 · answer #7 · answered by Michael Z 2 · 0⤊ 0⤋