Paid off mortgage -- how would new house purchase financing work?
March 9, 2014 7:23 PM Subscribe
Me and my SO completely paid off our mortgage a couple years ago. So, we have full equity. That's great, we're happy w/the situation. Now, if for whatever reason we decide to uproot and move to an entirely new city and/or state, how would the financing work?
posted by anonymous to Home & Garden (8 answers total)
For the sake of argument, let's say that we find a buyer who will pay us pretty much what we paid for the house. If we sell for that amount, we get the full equity amount to put towards the new house (minus some fees, I'm guessing), correct? If we sell it for, say, $10K more than we paid, do we get to put that amount towards a new house as well? If a house we decide to buy is pretty much the same price as the one we sold, would using the equity to buy it outright be considered equivalent to a cash deal (assuming we had enough cash on hand to cover the difference)?