How To Sell My House With A Mortgage in Jacksonville? [3 IMPORTANT THINGS TO KEEP IN MIND]

How To Sell My House With A Mortgage in Jacksonville? [3 IMPORTANT THINGS TO KEEP IN MIND]
Mike:
Hey there. It’s Mike with Unload My Home, down in Jacksonville, Florida. We’re a local cash home buyer in Jacksonville and today I wanted to share with you some considerations you may have if you need to sell your house with a mortgage.

When you’re selling a house with a mortgage, there are three important things to keep in mind. First, you’re going to need to pay off your mortgage at closing. So you’ll need to make sure that you have equity in your home. If you’re unsure what the balance of your mortgage is, you can give your mortgage lender a call, and they’ll give you this information. Every month that you’ve been paying your mortgage, some portion of that is interest and some portion of that is paying down your mortgage. So if you’ve owned your home for a long time, you may have more equity in your home than you think.

The second consideration when selling your home with a mortgage is that you can’t forget about the closing costs. If you’re using a real estate agent to list your home on the market, that’s usually about five or six percent right there. Then you have the other closing costs, which can range anywhere from 0.75 to another 2%. So make sure at the end of the day, after you’ve calculated your closing costs, that you still have enough left from the sale based on your sales price, to cover the amount that you have to pay off on the mortgage. You have a $100,000 home, your closing costs can often be as much as $8,000 on the property. So if you have a mortgage, you’ll need to make sure that that amount will cover the payoff of the mortgage at the closing.

If you’re selling a home with a mortgage and you’re underwater, which means the sale price after closing costs won’t be enough to cover paying back the mortgage, You have a couple options here.

First, you could come up with the cash out of pocket and pay off the mortgage at closing, by adding some of your cash. The second option is you can contact your bank and reach out to them about a possible short sale. But the problem with this is this could hurt your future credit, if you need to get another loan for a new house. The third consideration, if you need to sell your home with a mortgage is that you need to continue paying your mortgage all the way up until the day of the closing. If you don’t do this, it could hurt your credit and if you’re buying another home after, or renting a home after, you may not be able to get a loan, if your credit is lowered because you haven’t been paying your current mortgage payment. Or, you could end up getting a worse interest rate than you would if you’d continued to pay your mortgage payment until closing.

So these are the important things to consider when selling your home in Jacksonville with a mortgage. If you’re working with a real estate agent and a title company, they’re going to take care of a lot of the complicated parts for you, like paying off the mortgage at the closing. But it’s important to know these things, especially when you’re setting your price, to list your property, so that you make sure that after the closing costs, that you’re still going to be able to pay off your mortgage and hopefully walk away with some profit.

If you have any about selling your home in Jacksonville with a mortgage, feel free to reach out to us. We’re always happy to answer any questions that you may have.

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