Financial Advice

Proceeds from Sale of a Home

One of the most important questions consumers will ask themselves is "how much money the sale of their home will yield?" That's 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 home equity loan, on the property you'll have to pay that off when you sell the home. When you sell a home, you'll also have to pay interest on your outstanding mortgage balance from the date of your last payment until the date of the sale. You're also liable for property taxes up until the day you sell the home. At times, seller's 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 away at your proceeds.