People who already own a home.....

If you own a home and then buy a new one, do you transfer your mortgage and then take out another mortgage for the difference? How does this work?? TIA!!

Re: People who already own a home.....

Mortgages are not transferrable to new houses. You have to get a new mortgage for the second house and if you want to own both houses at the time time (while waiting to sell your existing house), you just pay both mortgages.

Re: People who already own a home.....

the buyers of your house give the bank the money to pay off the mortgage you have (or the buyer's bank does)

the next house you get a new mortgage

Re: People who already own a home.....

I'll try to use an example, lets assume you had a buyer on your home for lets say $250K (for which you still owed $200K on your mortgage), and the house you were buying was going to be $300K, at closing your buyer's check (from their mortgage or cash in hand) would pay off your existing mortgage, and any equity you'd built up in the house plus any profit you made from the sale would be paid to you directly with a check. You would be taking out a whole new mortgage on the property you're purchasing and any proceeds you may have from the sale of your house can then be put towards the new home.

Re: People who already own a home.....

Thanks!