If I already own a house of which I am still paying a mortgage on, and I move to a new house. What happens in terms of mortgages when I sell my existing house to move to the new house?
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The money from the sale of your old home goes to pay off your existing mortgage, before you even get to see any of it. If the house sells for more than the payoff amount for the mortgage, then you get a check for the rest (minus typical expenses, like attorney fees, closing costs, etc.). Then, your old mortgage is completely done and gone.
To get a mortgage on the new home, you have to apply for (and receive) an entirely new mortgage, likely with new terms, interest rates, etc.
In theory, you could essentially work through the bank to kind of “transfer” your existing mortgage, in certain special circumstances, but that is rare.
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