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derek
Guest
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 Posted: Wed Jan 18, 2006 10:43 am Post subject: selling a home having mortgage on it |
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Is it possible to sell my home having a mortgage on it? What may be the consequence?
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 jameshogg
Joined: 20 Dec 2005
Posts: 4795
Location: nevada
590.75 Dollars($)
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| Posted: Wed Jan 18, 2006 10:50 am Post subject: |
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| I would like to know how much is your home worth and how much you owe on the mortgage? |
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derek
Guest
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| Posted: Wed Jan 18, 2006 10:54 am Post subject: |
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| The value of the home $350,000 and the mortgage balance is $320,000. |
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jameshogg
Joined: 20 Dec 2005
Posts: 4795
Location: nevada
590.75 Dollars($)
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| Posted: Wed Jan 18, 2006 10:59 am Post subject: |
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Hi Derek,
You can always sell your home and it becomes sometimes necessary depending upon the situation. But you have keep it in mind whether you are going to make any profit by selling it or whether you are going to lose money with different costs associated with it.
In your case I don't think it will be wise to sell it off if it is not necessary. The difference is so narrow that it may not give you any profit after you meet the costs related to the sale.
You should also take into account if there is any pre-payment penalty which is there for most mortgages. You can check with your lender to ensure that you are not going to face any loss in selling it.
If you ask me then I shall suggest that it is not the right time.
James |
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murphy
Guest
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| Posted: Wed Jan 18, 2006 11:13 am Post subject: |
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Hi Derek,
Even if you have a large equity built on your house, you should analyze the costs involved with selling a house and the pre-payment penalty on the mortgage you owe. The different costs involved in selling may be -
- Commission of the broker.
- Capital Gains Tax.
- Taxes on state and city transfer.
- Association transfer taxes for co-operatives and condominiums.
- Assessment of special transfer.
You should consider the costs because your first priority should be to pay off the mortgage after the selling of your house.
As most loans, may charge a penalty if you sell or refinance the property within first two years of the period, so it is better to check the nature of your loan and discuss with your lender.
Murphy |
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derek
Guest
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| Posted: Wed Jan 18, 2006 11:26 am Post subject: |
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Hi all,
Thanks for the replies. I shall sit with my lender and sort out the matter.
Derek |
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stevenson
Guest
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| Posted: Wed Jan 18, 2006 11:30 am Post subject: |
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You should also take into account the purpose of your selling.
If you are selling the house to buy another one, check whether you have to pay a higher rate on the new mortgage.
May be you don't like the house you live in but the mortgage may be affordable to you. In that case you should hold it and renovate. |
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