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Mortgage proceeds: Home sale proceeds calculator
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One of the most important questions consumers ask themselves is, “How much money will the sale of my home yield?” This is largely dependent on two things: The amount you still owe on the home and what you will have to pay your realtor for selling the home. If you have a second mortgage or a home equity loan on the property, you will have to pay that off when you sell the home. When you sell a home, you will also have to pay interest on your outstanding mortgage balance from the date of your last payment until the time of the sale. You are also liable for property taxes up to the day you sell the home. At times, sellers have additional expenses. Local governments will often require that you pay a transfer tax when the home is sold. Incidental closing costs may also nibble at your proceeds.
Mortgage proceeds calculator FAQs
Deduct your remaining mortgage balance and any selling costs to calculate the net profit from your house sale. You'll need to subtract the amount you owe on your mortgage, any outstanding fees or liens and the costs of selling your home (such as closing costs, realtor fees and transfer taxes) from the sale price.
Deciding what to do with house sale proceeds depends on your financial goals and circumstances. Some options include using the funds to pay off debt, reinvesting in a new property, investing in a retirement account or putting the money towards other financial goals. You can consult a financial advisor to determine the best course of action based on your financial situation.
When you sell a house, you wait to receive the money because the closing process can take several days to a few weeks, depending on the specifics of the sale. The exact timing will depend on factors like the buyer's financing, any contingencies or repairs that need to be made, lien checks and other considerations. Colorado is a wet funding state; so, after closing and the buyer signs their loan documents, you should expect to receive the net sales proceeds immediately or at least within 48 hours.
Net proceeds from a home sale refer to the money you receive after all the costs associated with selling your home are deducted from the sale price. These costs may include realtor fees, closing costs, mortgage payoffs, and any other outstanding fees or liens on the property. You can use the Home Sale Proceeds Calculator to estimate your net proceeds from a home sale. You'll need to input your home's sale price, outstanding mortgage balance, real estate commission, transfer taxes and closing costs.