1. What is Net Proceeds from Home Sale?

Net proceeds from a home sale represent the amount of money you actually receive after paying off your mortgage and covering all closing costs. It's the true financial outcome of your home sale transaction.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Sale\ Price \) — The amount your home sells for
• \( Loan\ Balance \) — The remaining amount on your mortgage
• \( Closing\ Costs \) — All fees associated with the sale

Explanation: The calculation subtracts your financial obligations from the sale price to determine your actual take-home amount.

3. Importance of Calculating Proceeds

Details: Knowing your net proceeds helps in financial planning for your next home purchase, understanding your equity position, and making informed decisions about selling timing.

4. Using the Calculator

Tips: Enter the sale price of your home, the remaining balance on your mortgage, and estimated closing costs. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in closing costs?
A: Closing costs typically include real estate agent commissions, transfer taxes, title insurance, attorney fees, and any seller concessions.

Q2: Can proceeds be negative?
A: Yes, if your loan balance plus closing costs exceed your sale price, you'll need to bring money to closing (known as a "short sale").

Q3: How accurate should my closing cost estimate be?
A: For precise calculations, get a detailed estimate from your real estate agent or title company, as costs vary by location and sale price.

Q4: Are capital gains taxes included?
A: No, this calculator shows gross proceeds before any tax obligations. Consult a tax professional about potential capital gains taxes.

Q5: What if I have multiple mortgages?
A: Include the total of all mortgage balances you'll need to pay off from the sale proceeds.