House price: This one speaks for itself. It’s not the price at which your home is first listed, it’s the price at which the home actually sells when all is said and done. There’s a strong possibility that it will be the same number, but it’s important that you understand the selling price of your home could be higher or lower when it finally sells.
First loan balance: This amount usually represents the original mortgage you took out on your home when you first bought your house. Ideally, it’s the main lien holder on your house.
Second loan balance: If you took out a second mortgage or home equity loan, this would qualify as a second loan balance.
Other loans: If you took out a third loan on your home or pledged it as collateral, it would show up here. Or, if there’s another loan you’d like to pay off with the mortgage, you would list it here.
Property taxes yearly paid/Annual property taxes: This one is a bit misleading. The reason is that your property tax allocation is going to be prorated based upon when you actually close your home. You’ll get credit for whatever you already paid or charged for the time you’ve lived in the home that you haven’t paid for yet. The company or attorney that closes the transaction when your home sells will do the research and reflect whatever the amount is that needs to go here.
Mortgage prepayment penalty: If you got a loan that required you to stay in your home for a period of time before you sold it and then subsequently charges a payment if you do sell early, then you would enter that penalty amount here.
Sales commission: This is the line where you would enter the commission that your agent would earn from helping you sell your home.
Other: In this category, you would put any repairs you needed to make to get the home sold for top dollar, any points you’re paying for the buyer or any closing costs you’re covering for the buyer at closing.
House Price: $250,000
First Loan Balance: $125,000
Second Loan Balance: $18,000
Other Loans: $3,000
Annual Property Taxes: $2,500
Estimated Closing Month September
Mortgage Prepayment Penalty: $0
Sales Commission: $15,000
- Other: $0____________
Net Proceeds: $86,500