Profile picture for dae327

does the money you get from selling your house go towards buying a new house?

if i sell my house, do you use that money as a down payment and to pay off the mortgage I already have?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2011 - Sixteen Acres
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (9)

Good Morning you got some great information.  At the closing of your property your current mortgage and closing costs will be paid from the proceeds of the sale.  The money left over is given to you to  do what you chooose to do.  You may buy a house that day with the money if you choose as your down payment.  Good Luck what great rates they have out there!!! 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 05 2011
Good morning, First and foremost if you have a mortgage the bank has to be paid off at closing from funds of the sale. Any profit made from the sale could be used towards a new home, if you so choose to use your profit. But there are many mortgages still in the marketplace that are 100% financing so you might be able to qualify for a no money down mortgage and keep your profit as a nest egg. Call me to discuss the real estate purchase process and how I can help you find your way home! My number is [contact info removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 09 2011
Profile picture for sunnyview
Proceeds from selling your house can go to buying a new house or a down payment, but they don't have to. If you are selling a house that you have owned and lived in for at least 2 of the last 5 years, any profit you make from your sale is tax free without any capital gains up to a set amount as explained in this article here.

For investment property, it works a little different and you may have to do a 1031 exchange to avoid taxes on gain. If you need more information or are concerned about tax issues, you can consult a local CPA or get more information direct from the IRS here.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 07 2011
I am a listing and buyers agent in Sixteen Acres. I lived there for years as well.

Contact me through my profile. I will work the numbers out with you to find out how much you will net from the sale of your home and how much you would need for a down payment on another. You can place offers on homes while your home is on the market,

Warm regards,


Christine Moran
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 07 2011
After paying off the current mortgage, any remaining money is yours as profit and can go towards the purchase of a new home. You can even do simultaneous closings (sell your house and then in the same day close on the next one, rolling the proceeds over into a new investment).
Hope that helps!
[link removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 07 2011
Hello,

Ofe is absolutely correct - the proceeds above and beyond the mortgage pay off for your current house, the closing costs and legal fees - can go towards whatever you like.  To purchase a new house you do need to put *some* money down - that amount varies depending on the type of mortgage you get for the new house.

If you are fortunate enough to have no mortgage on your current home, then you still will have closing costs for attorney's fees, realtor's fees, taxes etc and then you can chose to re-invest those funds into a new home.

[contact info removed by moderator due to self-promotion]

Thanks!

Amy
[link removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2011
Profile picture for the_country_hick
When you sell the house the money needs to be used to pay off your mortgage. A mortgage does not move to a new house. It also goes towards realtor costs and closing costs needed to sell it. Any money left over is yours to do with as you please. If instead you owe more than you get you can either short sale (if the bank agrees) or pay the difference out of other savings.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2011
Upon the sale of your property your current mortgage and closing costs will be paid from the proceeds of the sale.  Any money left over is given to you to  do what you wish to do.  You don't have to use the left over proceeds as down payment on a new property but in many cases that is what this money is used.  Best of luck on your sale.

Eric
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2011
I think that you should try to work with a buyer agent so that you better understand your specific situation.  When you sell a home you have use part of the proceeds of the sale to pay your mortgage, how you pay for your downpayment, closing costs, etc.. depends on the type of loan that you get to buy the other home.  I will be happy to put you in touch with an agent in MA, just click on my photo to give me your details.  Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2011
 
Related Questions
Buying a house to rent to wneu college students? My son being one renter
Profile picture for marcieks
Latest answer by marcieks
April 23 | 5 answers
does the money you get from selling your house go towards buying a new house?
Profile picture for Deb Forte
Latest answer by Deb Forte
September 05 2011 | 9 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 140 Garland St, Springfield, MA Home For Sale
    140 Garland St, Springfield, MA 01118

     For Sale: $211,500

    • Beds: 3
    • Sqft: 2078
    • Baths: 2.0
    • Lot: 10018
  2. 36 Barrison St, Springfield, MA Home For Sale
    36 Barrison St, Springfield, MA 01109

     For Sale: $134,900

    • Beds: 3
    • Sqft: 922
    • Baths: 1.0
    • Lot: 10018
  3. 186 Bolton St, Springfield, MA Home For Sale
    186 Bolton St, Springfield, MA 01119

     For Sale: $118,900

    • Beds: 2
    • Sqft: 942
    • Baths: 1.0
    • Lot: 11325