Suggestion on loan rates for mortgage note
Was curious what type of rates/terms folks are getting for holding a mortgage. This is the overview of the deal.
Property sell price $325K, (fair price, could resell today at this price)
Down Payment: $125K
Loan Term: 20 year amort. callable in 5, no prepayment penalty
Loan is for $200K. Buyer is asking for a 5% rate.
Buyer is self-employed with good credit (750) and tax documentation. Banks are not lending due to his self employment (C-corp) status, according to him.
Looking for some insight into standard closing cost / fees (on top of the legal, paperwork items) and thoughts on pre-payment? Perhaps a penalty if it's prepaid before 2 years? What would a reasonable loan origination fee and penalty fee be?
Thanks!