|How to swap|
What happens to mortgages?
|When swapping existing mortgages will be paid off at closing. Since property swap involves party A buying a property from party B party A's mortgage will be paid off from party B's proceeds, while party B's mortgage will be paid off from party A's proceeds. Because most transactions are financed actual funds are coming from the mortgage companies, plus equity that either party had, (if any).|
Did you know that....
When trading real estate owners pay off the mortgage on their existing home and obtain new financing on the new home - all on the same day via simultaneous closing. More info at How to swap...