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Selling a house isn’t free — here’s a breakdown of common closing costs for sellers. ... If there is an existing mortgage on the house, that will have to be paid off as well.
However, if you borrow against your home by, for example, taking out a home equity loan, you don’t have to pay taxes on the loan proceeds — you get the money tax-free.” Cons of tapping ...
Refinancing can help you pay off your mortgage more quickly if you shorten the loan term — if your new mortgage is 15 years, instead of 30 years like the original one, say.
Before the closing happens, the settlement agency must ensure that all the money that the lender and buyer expect to send into escrow matches the total amount expected by parties that need to be paid, such as the seller and real estate agents. This matching process means that accounting information is gathered and the order is “balanced.” [8]
Paid outside closing (POC) is the fees or payments rendered outside normal title insurance and underwriting fees due at the time of closing a loan. When acquiring a mortgage or refinancing , a lender or broker may show that an appraisal fee is POC because the fee is usually due at the time of service, prior to closing.
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