Home Selling in 07020>Question Details

Manan Shah, Home Buyer in San Leandro, CA

I plan to sell my condo which I bought for $ 300,000. I made a 20% down payment and have been living in it for the lst 2 years.

Asked by Manan Shah, San Leandro, CA Thu Apr 3, 2014

If I sell it for say, $320,000, how does the bank pay me and how much do i get back? Considering I have paid around $80,000 to the bank till date.

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Answers

4
The numbers will all be adjusted at closing - the title company or attorney, if you use one - will pay off the bank out of the proceeds of the sale.


You will be given a check for the balance, after all expenses/costs are paid out.

If your mortgage was for $240,000 (80% of the 300,000 purchase price), you won't see that number reduced by very much after only 2 years in the home. Most of what you pay monthly, now, is interest.

Check your recent mortgage invoice and you should see what the balance is that you owe the bank (you could call them, too if you want, for that information).

That number will be deducted from your sale price, along with other selling costs (ask your agent or attorney about the specific numbers).

Best wishes.........
1 vote Thank Flag Link Thu Apr 3, 2014
you're very welcome Manan, glad to have been of help!!!
Flag Thu Apr 3, 2014
Debbie, thank you for your reply. It was very helpful.
Flag Thu Apr 3, 2014
Hi Manan

if you have paid $80,000 to bank in only 2 years about $20,000 of it may have been for interest not sure if your taxes and insurance was also in that $80,000 so that could be another $20,000 for taxes and insurance. that gives you about $40,000 equity plus your initial %20 is another $60,000 if you feel you can sell your condo for an additional $20,000 that is a total of $120,000 subtract your closing cost that could be about $20,000 that will give you about $100,000.

If you like I can come over and give you a free consultation on the market value of your hoe and come up with a more exact walk away number. PLease contact me
0 votes Thank Flag Link Thu Apr 3, 2014
To get an idea of what you will walk away with when you sell your home, call your bank (or check online) and see what the payoff will be in 3 months. This will give you time to list and sell the home and will factor in the payments you will make during that time.

Also, talk with your real estate agent and have them prepare a written list of closing costs to subtract from the sales price as well. If you have prepaid your home owners insurance, taxes or utilities, you will get a prorated share back at closing.
0 votes Thank Flag Link Thu Apr 3, 2014
The bank doesn't pay you anything. The buyers (or their lender) provide the closing agent with a check for $320,000, then the closing agent subtracts the following to arrive at an amount that you would get back

The SALES PRICE
MINUS Realtor Commission (generally 6%)
MINUS Transfer Taxes and Title Fees
MINUS payoff amount on your mortgage
EQUALS the net amount you would get back at closing

Like Debbie said, most of what you pay to the bank early on are interest charges. Also, part of your payment is probably allotted towards property taxes and insurance. So if you have a 30 yr fixed loan that started at $240,000, you probably owe about $230,000. If it was a 15 yr fixed, then you probably owe about $215,000. This is based on having the loan for only 2 years, but you can check your mortgage statement to see how much you owe.

Hope this helps!
Tony
0 votes Thank Flag Link Thu Apr 3, 2014
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