Do you get the money used to pay your mortgage back when you sell your house?

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  • Do you get the money used to pay your mortgage back when you sell your house?


Answer #1 | 22/12 2013 21:37
No of course not. Any money still owed would be paid off.
Answer #2 | 22/12 2013 21:51
Nope. That's not how it works. When you buy a house, unless you pay cash, you take out a loan. You make those loan payments until you pay off the loan or sell the house. Home values fluctuate. You could buy a house for $150k and in 15 years it's worth $400K. In that case when you sell the house you will have plenty of money to pay off the mortgage balance and have lots left over. You could buy a house for $150k and in 15 years it's worth $75k. In that case you owe more than the house is worth. You won't get a dime if you sell it and you may not be able to sell it at all without ponying up cash. A good portion of the mortgage payment is INTEREST paid to the lender for lending you the money. In essence, you're paying rent on the money you borrowed.
Answer #3 | 22/12 2013 21:47
Jerry and Cathi made some valid points, but also keep in mind that after you sell a house, you will have to pay taxes on the sale, not to mention some of the closing costs may come out of your portion of the sale money. The best way to calculate how much you would get, is to subtract your payoff amount from the price you sell the home for.
Answer #4 | 22/12 2013 21:38
I don't think so. When you sell off the house, you will use the sale proceeds to pay off the balance loan on that house. If any amount is extra, then you can keep it as profit.
Answer #5 | 22/12 2013 22:02
You're (understandably) confused about what a 'purchase price' is and what a 'mortgage' is. A purchase price is what it is, sort of. You purchase a house for $100, 000, but there will also be closing costs, etc., adding a few thousand dollars to the 100,000. But the 'mortgage' you speak of? Remember that lenders are in the business of making money. Let's say that you put 20% down, or $20,000 cash down on the house and take out a loan for $80,000. The bank is going to charge you interest on that $80,000--that's how the lenders make money.
Answer #6 | 23/12 2013 04:07
no, the rest of the mortgage would be paid off with the proceeds you get when you sell the house. you use what's left to put on the new house.
Answer #7 | 25/12 2013 18:46
Yes and No. For example... You buy a home for $100,000 and pay the mortgage for 15 years of the 15 year term. After 15 years, your mortgage balance is $0, and you sell the home for say $150,000 because of a good market. You walk away with $150,000 (minus any realtor fees, government transfer taxes, settlement fees, seller concessions, etc). On the flip side. You buy a home for $100,000 and pay the mortgage for only a few years of the 15 year term. During these couple years, the market has tanked, and your home is only worth $80,000. You sell it to someone for $75,000. You need to pay the mortgage lender the difference between the $75,000 and what is left on the mortgage balance.
Answer #8 | 23/12 2013 13:08
As you say everything....NO! The only money you will get back is if you sell the house for MORE that what it's worth or the amount is MORE than what you still owe on your mortgage.
Answer #9 | 23/12 2013 08:49
When you purchase a house and obtain a mortgage to purchase a house, you would be required to pay the monthly mortgage payment each month. Based on a couple of things in selling your house after owning it for several years. If you obtained a mortgage loan in order to purchase your house, and owned the house for 15 years and decide to sell the house you would have a mortgage loan balance. If this mortgage loan balance is $50.000 and you sell your house for $175,000. You would be required to deduct the mortgage loan balance from your sale price. In this example, you would subtract the mortgage loan balance of $50,000 from $175,000, which would leave a balance of $125,000 that would be given to you at the close of the sale transaction. Of course from the $125,000 would be any closing cost you would be required to pay. The escrow closing officer would obtain a payoff statement from your current mortgage lender as to how the mortgage loan balance. The escrow closing would make the arrangements to make sure your former lender is paid off the balance of the mortgage loan you owe. You would no longer have any responsibility to this mortgage lender at all. I hope this has been of some benefit to you, good luck. "FIGHT ON"
Answer #10 | 23/12 2013 04:17
You get the difference between what you owe now and the selling price. Less fees, closing costs and other charges. What on earth makes you think you get back all the money paid on the mortgage so far? Do you think if someone rented - they get all the rent money back when they move?

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