Anyone have experience with owner finance as the owner?

[Mel Hayes]

Good morning BP.  Someone has made an offer on a home I am selling and they are asking me to owner finance.  I have not experience with this so I am asking the BP community.  The home is on sale for 57k he wants to put down 12k and owner finance the rest.  Basically make payments to me as the bank.  I get this much.  What I need a little assistance with is coming up with terms.  How long should the length of terms be?  Do I calculate the interest payment on the entire 57k or on the remaining 45k?  Standard bank loan is 4% do I go with what is standard or is it typical to have a higher interest percentage when doing a owner finance?  If he does default, what is that process?  

Any input would be greatly appreciated.  

Thanks,

Mel