I took a 30 year mortgage a few years ago. The original amount financed was about $66,000. I have come off with approx. 75,000 through a land sale. Is it possible to pay off the 66,000 or do I still face the total amount, which is about 176,000 (FOR 30 YEARS)?
2007-11-04 07:46:34 · 8 answers · asked by bigmaninjawja 1 in Business & Finance ➔ Renting & Real Estate
Nope, you just pay off what you currently owe. The $176,000 is just how much you would pay if you kept the loan for the full 30 years. Make sure you don't have a pre-payment penalty, have enough to pay a Realtor (if you used one) and you should be good to go! You may even profit a little back after closing.
Feel free to contact me directly with any questions. Good luck!!
2007-11-05 02:50:37 · answer #1 · answered by Quicken Loans 5 · 0⤊ 1⤋
The 176,000 INCLUDES interest charges IF the loan goes full term so if you pay it off early the you do not have to pay the full interest charges. The only amount you would have to pay is any unpaid principal balance AND any prepayment penalty fees so talk to your lender and ask what a current payoff amount would be and if there are any prepayment penalties.
Once you have this answer then the second question you should ask yourself is,"Do I want to pay off this loan?" Can you invest those funds and get a higher AFTER tax rate of return then the rate you are currently paying for the interest on that note? IF the morgage is on a primary residence AND it is a low fixed rate interest, then it may make sense to continue monthly payments and take the tax writeoffs, and use the cash you have to buy additional investment property but without knowing your TOTAL financial picture I can not give any sound advice. I would talk to the lender about principal balance, prepayment penaltys if any and then sit down with a real estate/tax accountant and see what makes you the most money. And also think about any tax liablity you have on the land sale; you do NOT want to spend 66K on paying off a morgage and then not have money to pay Uncle Sam next year on taxs.
2007-11-04 08:00:16 · answer #2 · answered by Jerrold J 3 · 2⤊ 0⤋
Your payoff amount will be the current principal balance of the loan,plus any accumulated interest during the period from your last payment, late charges (if any) and possibly a payoff service charge along with a recording fee.
The 176K was the figure quoted to be the total amount you would have paid if you made all of the payments during the 30 year term of the loan.
2007-11-04 07:54:34 · answer #3 · answered by Anonymous · 1⤊ 0⤋
You should be able to pay off the current balance on the loan. Contact your lender and ask for the current "payoff amount." The 30-year cost is what you would pay in total if you held the loan to term (the entire 30 years).
2007-11-04 07:51:14 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Bart w,
1st have a tax attorney explain how much u may or may not own on the land sale.
Then put away at least 20% of the 75K for taxes (do not touch).
Then pay off ur outstanding loan balance (65,500) give or take .
if after taxes u do not have the outstanding balance - take the money (less emergency cash $1k) and pay down the balance. U'll b in great cash place in next five yrs or less.
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2007-11-04 08:05:46 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You can pay it off if there is no prepayment penalty. Be sure to keep enough out of the 66k to pay your taxes. Call the lender and ask for a payoff amount. If the interest rate is really low, you might want to keep it and invest the money somewhere else to net more$
2007-11-04 07:51:36 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Check first with your lender to see if there is any prepayment penalty - sometimes there is, but usually only in the first few years of the mortgage.
2007-11-04 08:13:56 · answer #7 · answered by Judy 7 · 1⤊ 0⤋
Get a payoff quote from your mortgage lender and pay it off. Do not wait. It is better to pay it off than to wait and the money is gone.
2007-11-04 07:56:43 · answer #8 · answered by KB 2 · 1⤊ 0⤋