Can you sell your home if you have a loan secured on it, if you intend to pay it off at the end of the sale?
Can you sell your home if you have a loan secured on it, if you intend to pay it off at the end of the sale?
Yes, you can sell your home if it is secured by a mortgage. A mortgage, or home loan, is a lien against the title of the home. Theoretically, that means that if you ever sell, or refinance, your current home then the mortgage loan will be paid off.
Practically speaking, what happens when you sell your home is that the proceeds will actually be paid out of an Â"escrowÂ" account, or a short-term account that is used to pay off liens against the title. This usually happens at the closing. Any proceeds left over, after paying off liens and fees and closing costs, will then be transferred to your bank account (hopefully you make money on the home sales!)
In order to insure that the title is ‘cleanÂ’ Â- a title insurance company will usually come in at closing and certify that everything is paid off before you get your proceeds.
I hope that his helps you make the right decision for your particular situation, and thanks for asking Bill for help!
I hope this information helps you Find. Learn & Save.
Best,
Bill
The mortgage market: what's new?
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates April 10, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 10, 2024 stands at 6.88%. This reflects a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 10, 2024 is 6.16%, indicating a 10 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for April 14, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.09%
- 15-year conventional loan is 6.29%
Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,874. A 15-year mortgage would require a monthly payment of around $2,399.
Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.
