How do you sell a house that still has a mortgage?

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asked Nov 6, 2022 in Real Estate - Renting by Gusdiff (1,140 points)
How do you sell a house that still has a mortgage?

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answered Mar 1, 2023 by Coffeemomma (28,760 points)
To sell a house that still has a mortgage you sell the house as you normally would and the buyer's funds pay your mortgage lender and cover transaction costs.

Then the remaining amount becomes your profit.

That money can be used for anything, but many buyers use it as a down payment for their new home.

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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