Your question: Can I sell my house if I still owe mortgage?

The simplest way to sell a home you still owe money on is to sell it for more than what you owe. … When the home is sold, those funds are used to pay the remaining balance on your loan and you can retain the remainder (if any) as profit on the sale.

What happens if you sell your house before paying off mortgage?

A prepayment penalty is a fee you may have to pay if you sell before your loan is paid off. … A prepayment penalty can be calculated a few different ways, varying by lender. It could be a percentage of your remaining loan balance (usually between 2-5 percent), a percentage of owed interest or a flat rate.

Can you sell a house while it’s still on a mortgage?

The short answer is yes. You can sell your home even if it has a balance on the existing mortgage. In fact, this is commonplace. Outside of refinances, this is probably the second most common way to pay off a mortgage because more people have a mortgage than own their property free and clear.

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Do I need to tell my mortgage company if I sell my house?

When do I tell my mortgage lender that I’m selling my house? You don’t need to tell your lender about your home sale until you’ve accepted an offer. However, it may be helpful to let them know earlier so they can give you an accurate mortgage payoff quote.

Can I sell my house and keep the money?

Generally, the proceeds from a home sale are excludable up to $250,000 for individual filers and $500,000 for married couples, as long as the home was your primary residence and you lived in it for at least two of the last five years. Amounts over the exclusion limit are subject to capital gains tax.

What is mortgage exit fee?

Exit fee: An exit fee is charged for closing your mortgage account – for example, if you switch to another lender or remortgage to another deal with the same lender. But it can also be charged when you just finish paying off your mortgage.

Where should I keep the money when I sell my house?

Where Is the Best Place to Put Your Money After Selling a House?

  • Put It in a Savings Account. …
  • Pay Down Debt. …
  • Increase Your Stock Portfolio. …
  • Invest in Real Estate. …
  • Supplement Your Retirement with Annuities. …
  • Acquire Permanent Life Insurance. …
  • Purchase Long-term Care Insurance.

At what age can you sell your home and not pay capital gains?

The over-55 home sale exemption was a tax law that provided homeowners over the age of 55 with a one-time capital gains exclusion. Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences.

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Can you sell your house for whatever you want?

You can sell your property for whatever the buyer is willing to pay. … A: The short answer is that you can sell your home for any amount you choose as long as you and the buyer are prepared to deal with the financial consequences.