Selling House Before Mortgage Period Completes Or At Early Stages?

I am planning to buy a house to avoid paying high rent and will take a mothly repayment mortgage with minimal deposit.As I know,the for first few years,the monthly installments are composed of mainly interest and small part of capital repayment(80-20 ratio).That means for first few years I will be paying interest more and will have very low equity in house.Now during that period if I want to sell house,am I going to loose money considering following:





A.The property price remains almost same.The property does not get appreciated in 2 years.





B.My Income remains same.





Example:


At the time of buying:


Property Value: 100,000


Total to be returned: 150,000 (50,000 is Int)


Monthly Installment: 1000 (800 Int,200 Cap repay)





After 2 years:


Property Value: 100,000


Capital Repaid: 4,800 (200*24), Interest Paid: 19,200


Money Paid: 19,200 + 4,800 = 24,000





Now if I sell the house will I get 24,000 as part of selling (after paying off everything to the lender) or just 4,800.|||You'd get 4,800. The interest is simply an expense along the way. Your equity is what you'd get back and that would only be 4,800. With typical sales commission of 6% of the sales price, you'd have a 1,200 loss if the buyer paid all other costs.





At current rates, paying 1,000 per month on a 100k mortgage would be on a 12 year schedule and you'd actually pay down about 11,700 in principal, so after a 6,000 sales commission you'd be looking at about 5,700 net.|||TFTP

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