Few people can afford to pay off their mortgage before they sell.
Normally it's done at closing. Proceeds from sale are used to pay off any debts, lien, taxes so that title can pass without issue.
And No you dont have $100,000 profit.
You are probably getting back your down payment, and possibly a little profit. Some people are LOSING money right now on loans they couldnt afford to begin with: ie, bought house for $700,000, owe $500,000 house now worth $600,000. Loss = $100,000
Cost minus Down Payment = Mortgage AmountDo you have to pay off your mortgage before you can sell your house?
No you do not have to pay off your mortgage before you sell your house. What the buyer pays for your home pays of any liens against the property including the mortgage you have. Good luck!
You can sell your house before you have it paid off. You will have to pay it off at closing I believe (or before)
although that sounds easy, it depends on where you are buying since in some states over the past 8 years the price on houses rose so quickly that now they have plumeted and people selling their homes are both having a heck of a time getting buyers, but are also losing a bundle because the prices of homes in their areas (several states) have decreased a lot....so no profit for them.
Don't think of buying a home for the profit aspect. Buy a home because you need one, want one, maybe for a yard for the children to play in, maybe just to have a roof over your head, etc. Remember also that there are closing costs to pay, and over the years you might have to pay for lighting, sidewalks, a new road, water and sewer lines, etc. as well that you won't get money back from, plus general maintenance on the home or bringing it up to code..
If on the other hand you're asking ';do you have to pay off your mortgage before you buy another home'; then the answer is ';no';.
No. If you can sell for enough to pay the existing mortgage you'd have no problem
You have to pay the mortgage off when selling your home. It will come out of your seller proceeds. Your house may be worth more than when you paid for it and yes you could possibly make $100,000 profit but realisically it may be down the road instead of at the present time. How long have you been in your house? I would suggest you wait to sell your home until you have at least 30% equity in so that if you were to sell your home to an investor, you could possibly receive cash back at the end of your transaction. Also if you are thinking about selling because you are afraid of foreclosure, ask your lender about refinancing or if you don't want the house anymore than ask about a short sale.
To answer your question. That is how money is made in real estate. buy selling the home for more than you paid. When you sell the home if their is a balance the mortgage lender will get the balance, you'll get the difference.
Yes you can sell your house before you pay off the mortgage. The house will be paid off at closing and any money you make above the balance on the mortgage is your profit. Of course with realtors fees and closing costs I doubt you'll clear $100,000 profit.
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