What Happens To The Morgage After You Sell A Property?

When you take out a mortgage on a property for $100,000 for example with an interest rate of maybe 5%. With 100% financing plus interest, that would make your total balance owed $105,000.

When you turn around and sell the property for $150,000, I think the lender that your buyer uses pays you and you would turn around and pay off the lender you owe and keep what's left over (you may have to pay closing costs). So now, your buyer owes their lender and you owe nobody nothing, plus you've made a little over $40,000.

Thanks Carter B)
ok, so I see...

So does the refinancing part work the same way?

and also, Can You tell me about how does the closing cost work as well?

Just what PlatinumnOne said. When you sell the home, with the money you get you pay off your mortgage in 1 shot and no loner make monthly payments. You are clear, and the only person that owes anyone money is the buyer.

Jeremy

That part, I don't know the answer. Someone else will have to answer that. I'm sure someone will answer.

Hello,
Understanding market cycle is a little bit more than making deals.What ever you are doing,I see you are making your luck!Seller Concession will be used for,Making a deal;Better.

P.S. I do also understand about...HOT area's/"I know the money is there,The question is?-How do i get them...Too give it"!

Whether you refinance or purchase with an originating mortgage Lender, there's still a loan to be paid off. Ok say I or you (or anybody else for that matter) purchases a property using SunTrust (or whomever your preferred Lender may be) as Lender to fund the loan. A few months or years time has past and you decide that you want to refinance the dwelling using a new mortgage Lender. We'll use Wells Fargo, in this instance, as the new Lender. Base on a recent property appraisal you find out that you have equity* ($$$) that you can pull out of your dwelling to go purchase another property for cash. So base on the new appraisal for the original property, the new lender Wells Fargo will refinance your original dwelling paying off the mortgage payoff amount to SunTrust and put a new loan (mortgage-lien) on the original property and give you a % of equity as cash (which would be in certified funds). This would be the money you would take to go purchase another dwelling for cash. Now you have a new mortgage with Wells Fargo, because the mortgage you had with SunTrust has been paid off.

will consist of proration of taxes, interest & any other lender fees (if you're using financing), points (if your financing), recording fees (basically record property in plat book), courier fees (delivery of documents), insurance (include flood insurance if applicable), earnest money deposit and any other credits, attorney or title company fee (handling the closing), Broker's commission (if you're using their services) and anything thing else i might a miss. Beware of junk fees!