Seller financing options for a primary house

[Kofi Thompson]

Hey Team,

I am looking at home for primary use that I believe I have a seller financing opportunity on. I'm thinking 30 year amortization with 5-10 year loan with balloon at end of term at 5% interest. 

My ask is if this is a good financing model then what exit strategies will I have with interest rates being what they currently are and no realization of what they will be in 5-10 years went the loan is due?

I want to protect myself and my family from an increased mortgage through refinancing later. I wanted to vet all Exit strategies possible to know what options would best fit.  Thanks for helping in advance. 

[Chris Seveney]

@Kofi Thompson

Two issues to deal with

1. Interest rate

2. More important is the equity

Many people will overpay to get a home on seller financing then realize they overpaid and cannot refinance because a lender may want 20% equity which could be a tough hurdle to overcome in the future if prices stay stagnant and you have a balloon in say 5 years.