How long does it take to pay off your mortgage?

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asked Nov 6, 2023 in Real Estate - Renting by SaraRumb (1,580 points)
How long does it take to pay off your mortgage?

2 Answers

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answered Nov 7, 2023 by Cathy21 (85,770 points)
The length of time it takes to pay off your mortgage ranges from 10 years to 15 years and as long as 30 years.

Some mortgages are taken out for 10 years, 15 years and most mortgages are taken out for 30 years.

The longer you keep the mortgage the higher interest you pay and the more money the bank makes on your mortgage.

Having a shorter mortgage term means you'll pay less interest and pay off the mortgage sooner but you also have higher mortgage payments.

The payoff on a mortgage is the payoff amount that you have to pay in order to satisfy the terms of the mortgage loan and completely pay off the mortgage debt.

The payoff amount of the mortgage is different from the current mortgage balance.

The current balance of the mortgage may not reflect how much you really have to pay to completely satisfy the mortgage.

Your mortgage payoff amount includes the interest that you will be paying and other fees.

Essentially the payoff amount of the mortgage is what it will cost you over the term of the mortgage when taking out the loan.

When you have paid off your mortgage in full your escrow account will be closed.

Any funds remaining in the account will be returned to you.

The mortgage lender is obligated by law to send you your escrow refund, if any, within 20 days after it closes your account.

You can move if you have a mortgage and even sell the house when you have a mortgage.

Having a mortgage does not mean you have to stay in the same house until it's paid off.

You can sell your house even when you still have a mortgage on it.

You can use the proceeds to pay off your mortgage you owe and then the bank can help you transfer title to the person or to the bank.

You can sell your home while it still has a mortgage on it but you do need to talk with the bank you got your mortgage from for approval.

The bank you got your mortgage from will want you to pay off the mortgage in full with the money you made from the sale of the home.

If you have any other liens on the house such as taxes etc then they too will be paid out of the proceeds from the sale of your home.

If you do sell your home remember that the mortgage will need to be paid off in full and you won't be able to just make payments on the mortgage anymore.

When you sell a house typically you as the seller pay part of the closing costs while the buyer pays the rest of the closing cost.

However the home buyer can ask you to pay the closing costs of the home and you can pay the closing costs if you decide to.

You can as a home buyer ask the seller to pay all of the closing costs although every mortgage transaction between a buyer and a seller are different and guidelines can vary by home loan type.

Closing costs on a mortgage and home are typically 2% to 6% of the purchase price.

The seller pays part of the closing costs such as their end of the local taxes and other municipal fees while the buyer pays other closing costs.

The closing costs are actually split up between the seller and the buyer and the buyer pays most of the closing costs.

Closing costs can be included in a home loan or mortgage or you can also pay the closing costs through another loan or any other way.

Closing costs, also known as settlement costs, are the fees you pay when obtaining your loan.

Closing costs are typically about 3-5% of your loan amount and are usually paid at closing.

To calculate closing costs, you can estimate 2% to 5% of the total amount you plan to finance.

For example, with a loan of $200,000.00, you could estimate closing costs between $4,000.00 and $10,000.00

To get a more accurate estimate, request a Loan Estimate document from your potential lender.

Closing costs are split up between buyer and seller.

While the buyer typically pays for more of the closing costs, the seller will usually have to cover their end of local taxes and municipal fees.

The closing costs on a home mortgage should include things such as loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.

Those should all be included in the closing costs when purchasing a home.

Basically Closing costs on a home mortgage loan include all of the expenses and fees associated with buying a home.

Closing costs are from 2 to 5 percent of the purchase price of the home.
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answered Feb 2 by SquareF (600 points)
edited Feb 6 by SquareF

Just stumbled upon this thread and it's been super informative. Thanks for breaking down the mortgage payoff process! I recently started house hunting and got in touch with a Mortgage Broker Liverpool. They've been a game-changer, giving me insights into different mortgage terms. It's a bit overwhelming, but your explanation on shorter terms making sense for less interest totally resonates with what they advised. It's my first time posting here, and I'm soaking in all the real-life experiences shared. Anyone else have some mortgage wisdom to drop?

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