Is the owner financing rates negotiable?

mgoravit · Joined: 21 Dec 2005 Posts: 1 0.07 Dollars($)

How do I know how much interest to charge for holding a 50% mortgage for my buyer for 10 years?

blue · Posted: Wed Dec 21, 2005 1:06 pm Post subject:

Hi mgoravit,

Welcome to MortgageFit Forums.

Owner financing rates are negotiable. You can ask an agent to check the current rate on institutional first or second loans with different mortgage brokers and lenders.

In owner financing you do not charge loan fees. The interest rates on owner financing are also influenced by Treasury bill and certificate of deposit rates.

This thing is for sure that you are not going to agree to a rate lower than from the one that you can earn through any other investments. You can refer owner financing section of this site for more detail on the topic.

Regards,
Blue

jameshogg · Posted: Wed Dec 21, 2005 1:13 pm Post subject:

Hi mgoravit,

You can find the applicable fund rates directly form the IRS although it is unlikely that you charge such a low interst. Atleast you can get a reference.

James

Guest 0.10 Dollars($)

Does this w/ bad credit I could still quaily for owner finance?

Caron · Posted: Thu May 25, 2006 8:58 pm Post subject: RE:

Hi Sally,

It is possible to qualify for owner financing even if the borrower has bad credit. Compared to the banks or mortgage companies which go for a thorough check up of a borrower's credit history, a seller financing the purchase tries to find out the buyer's ability of paying off the loan. The seller is lenient in comparison to the bank or private lenders.

Thanks,

Caron.

jerry · Posted: Thu May 25, 2006 9:00 pm Post subject: RE:

Hi,

You will get more information here on owner financing. I hope that it is going to help.

Thanks,
jerry

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