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If I sell my home before my mortgage is paid off, does this save me some $$ on the interest?
An example, I sell my home five years into my 30 year mortgage term. If I still owe $150 k , upon selling this becomes a one time payoff of the loan, instead of paying this balance for the remaining 25 years plus interest, which could add up to over 200 k. I think selling does save some money on the interest, maybe not much.
- Christin KLv 72 months ago
If you sell, you sell for the total of your entire mortgage and that will include interest you have already paid--the only interest you will save is that which accrues from the time you sell on--you won't owe it, because your mortgage will be paid off.
So the answer, basically, is no--it doesn't 'save' anything. You've already paid what will be paid for by paying off the mortgage.
- JudyLv 72 months ago
You'd pay the 150K you still owe, not any more interest, just the interest you've already paid..
- SlickterpLv 72 months ago
Yes, of course it does.
- StephenWeinsteinLv 72 months ago
Yes, it saves you a lot of interest, since you're paying only 5 years interest instead of 30.
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- curtisports2Lv 72 months ago
It's the paying off, not the selling, that saves interest. If selling is your way to pay it off, that's just one way to get rid of the mortgage. But where will you live? If you will have to take on a new mortgage to live somewhere else, you're not saving anything (unless you get a much lower interest rate than what you have now), because you incur costs of selling, buying new and moving.
- Anonymous2 months ago
You pay for the time you borrow.
- Rick BLv 72 months ago
Of course. When you sell the interest accrual stops. But most people then turn around and finance another home with interest. Since interest rates are at historical lows, now is a great time to finance a home.