Determine your mortgage balance
There are a number of ways to determine your current mortgage balance. Your monthly home loan statement should include the remaining balance. If it does not, the easiest option is to call your lender and ask for the current payoff amount. undefinedClick here for your free guide!
Finally, ask your lender if there are any "Pre-Payment Penalties" associated with your loan. Prepayment penalties are a "surcharge" or "additional cost" associated with paying off your home loan prematurely. In theory, prepayment penalties are necessary when a lender has made concessions such as reducing closing costs, loan origination fees, or discount points in exchange for originating a "below-market" interest rate as described in the " What about these 'no closing costs' options ?" section that follows. If a loan is paid off prematurely, the lender will not have made their required return or yield necessary to cover those waived closing costs, loan origination fees, or discount points and will need to recover them at the time the loan is paid off by you - the borrower. These can be very costly and any such "Pre-Payment Penalty" should be identified by a potential home seller early in the process of evaluating the potential sale of their home.
How much will I get if I sell?
You can estimate how much money you might net from the sale of your home using the mortgage balances you determined above and the chart shown below. REALTORS® often refer to this form generically as a "Net Sheet" to estimate the proceeds you get from selling your house.
SELLER PROCEEDS WORKSHEET
FUNDS TO SELLER |
|
| Contract Sales Price | $ |
| Property taxes and other escrow funds (items charged by mortgage lender and typically refunded by the lender about one month after closing) | $ |
| Prepaid property taxes - prorated (if applicable) | $ |
| Prepaid homeowner's dues - prorated (if applicable) | $ |
| Water/sewer fees due - prorated (if applicable) | $ |
| Other | $ |
TOTAL FUNDS TO SELLER: |
$ |
|
|
|
CHARGES TO SELLER |
|
| Brokerage commission (full-service commissions are about 6% of the sales price) | $ |
| 1st mortgage balance payoff | $ |
| 2nd mortgage balance payoff (if applicable) | $ |
| 3rd mortgage balance payoff (if applicable) | $ |
| Mortgage prepayment penalties (if applicable) | $ |
| Title insurance fee (estimae about $3 per $1,000 of sales price) | $ |
| Closing fee (usually $150-$300) | $ |
| Attorney's fee (or document preparation fees. Usually $200-$500) | $ |
| Recording fees (usually $20-$100) | $ |
| State tax ($1 per thousand of sales price if applicable in your state) | $ |
| Transfer tax (if applicable) | $ |
| Unpaid property taxes | $ |
| Unpaid homeowner's association dues | $ |
| Discount points if you've agreed to pay them in the contract
(1 point = 1% of loan amount) |
$ |
| Home inspection fees |
|
| Home warranty (if applicable) | $ |
| Wire transfer fee or express delivery fee (for payoff(s), usually about $25) | $ |
| Buyer's cost paid by seller (any closing costs you agree to pay) | $ |
| Pre-payment penalties (if applicable) | $ |
| Other charges | $ |
TOTAL CHARGES TO SELLER: |
$ |
|
|
|
NET AMOUNT DUE TO SELLER |
|
| Total Funds to Seller (from above) | $ |
| Less: Total Charges to Seller (from above) | $ |
NET PROCEEDS FROM SALE: |
$ |
OA