Yes you can sell your home during fixed term mortgage. But you must pay off the mortgage as soon as possible. Typical mortgages run from 15 to 30 years, and homeowners sell their homes to move before loans are paid. Sometimes, if the new house is of the same value as the previous one, you can port your mortgage.
Before selling your home the first thing you have to do when you meet an estate agent, is to find out your current mortgage pay off. Usually your mortgage lender provides you a nice payoff quote for a certain period of time.
If you pay off a fixed rate home loan early, it is probable that your mortgager will charge you a break coast, which can be thousands of bucks. It’s legal to collect break cost from people who close their fixed term fee before expiry.
Selling your home before ending up your fixed term mortgage, you have to make sure that you are up-to-date with your mortgage payment. If you owe more than the value of your house, you won’t be able to sell your house before completing mortgage period.
Negative equity, this will emerge when you sell your house below the present mortgage value. The sale of a home with negative equity may put the seller in debt. So always remember not to sell your house below the present mortgage amount.
However, if you sell your home and purchase another one of the same value immediately, you may be able to maintain the same mortgage you had before. Remember you can only do this if your loan is portable from one property to other.
Yes you can sell your home during fixed term mortgage period, but before that you must consider things like remortgaging, break cost, negative equity, etc.