Selling a house with a fixed-rate mortgage is fairly common, though it often comes with certain complications. Determining the mortgage payoff based on the remaining loan balance is one consideration; another is the possible prepayment penalty. If you want to sell your house fast, you might run into delays.
How Selling a House With a Mortgage Works
Many people have an outstanding home loan when they attempt to sell the house. The idea is that they’ll sell the home for enough money to pay off the loan balance while walking away with something for themselves.
Figure Out What You Owe and Estimate Your Net Proceeds
When it’s time to sell a house, contact the lender to determine your existing loan balance. You’ll then need to decide how much you want to try to sell the house for.
Find a Buyer for the House
Whether you use a real estate agent or try to sell the house yourself, the next step is finding a buyer. Understand that any potential buyer’s offer might not match what you were hoping to make from the sale.
Go Through Closing and Settle the Mortgage Balance
After selling a house with a fixed-rate mortgage, you’ll go through the normal closing process, including paying closing costs. When you receive the check for the home sale, the amount you owe on the loan will be automatically deducted from the payment.
Determine Whether You Have Prepayment Penalties
One of the things you should know before taking out a mortgage is whether you’ll owe prepayment penalties if you settle the fixed-rate loan early. Some loans have prepayment penalties during the first three years after you obtain the mortgage. The penalties are often a percentage of the total loan amount.
You Can Save Money by Selling a House With a Fixed-Rate Mortgage Faster
While your home sits on the real estate market, you’ll have to continue making your mortgage payment. Given that a home might sit on the market for a few months or longer before receiving an offer, these extra mortgage payments can add up quickly. If you run into a complication and the buyer backs out, you might have to make several mortgage payments before finalizing the sale.
To speed up the selling process and save money on making mortgage payments, you might skip the traditional market and contact a local as-is home buyer. Such sales could occur within several days, meaning the sale might finalize before your next mortgage payment is due.
The Local Home Buying Professionals at Sell Pittsburgh Now, LLC Can Explain Your Options
When selling a house with a fixed-rate mortgage lien, the process could take longer. This can be problematic when you are trying to quickly access your home’s equity. Rather than going through the traditional real estate market, consider a local as-is home buyer, which greatly speeds up the process.
At Sell Pittsburgh Now, LLC, we’ll give you a cash offer for a house in any condition. When you sell to us, you are not held liable after selling. For a no-obligation discussion about your situation, call us today at (412) 275-5238.