All Forum Posts by: C.S. Bryson

For the ballon payment I would plan to refinance into a traditional 30 year loan. Would this work?

No, but I suppose I could. Do you think that is more beneficial? Same down payment and interest rate likely with a conventional loan. Or am I incorrect?

Hi @Mindy Jensen

I had the same issue as  @Deborah Burian. I greeted the first 3 people that I received post replies from by saying "Appreciate your insight!" and i was banned. Could I request the same assistance as Deborah?

Thank you so much!

No the property is turnkey and currently tenant occupied. It rents for $2450. I anticipate a 2% per year appreciation rate.

The rental value is approximately $2550. At $2450, it will cover those expenses. The owner does not want to extend the debt for 30 years. She originally asked for 2 balloon payments. One in year 2, and another in year 5...

I was unsure of what to do so I created this offer

Long term, turn key rental with a tenant in place paying 2450 per month. Yes we have some reserves set aside.

Thank you for responding btw!

Seller Financing Offer

Purchase Terms

1. Purchase Price: $215,000

2. Down Payment: 20% of the purchase price, equal to $43,000

3. Financed Loan Amount: $172,000

4. Interest Rate: 6.5% per annum (fixed)

5. Initial Amortization Schedule: 12 years (144 months)

6. Balloon Payment:

• At the end of 24 months, the buyer will make a balloon payment for 50% of the remaining balance of the loan.

• This balloon payment will be paid through a cash-out refinance of an investment property valued at $198,000.

7. Remaining Balance: After the balloon payment, the remaining loan balance will be re-amortized over 5 years (60 months) at the same 6.5% interest rate.

Payment Terms

Initial Loan Terms (First 24 Months):

The monthly payment for the first 24 months is based on a 12-year amortization schedule:

Monthly Payment for First 24 Months: $1,573.39

Remaining Balance at Month 24 (Prior to Balloon Payment):

The balance after 24 months can be calculated using the amortization formula:

Remaining Balance at Month 24: $157,113.92

Balloon Payment:

The balloon payment will be 50% of the remaining balance at Month 24:

Balloon Payment Due at Month 24: $78,556.96

Re-Amortization of Remaining Balance (After Balloon Payment):

The remaining balance after the balloon payment will be:

This amount will be re-amortized over 5 years (60 months) at the same 6.5% interest rate.

Monthly Payment for Final 60 Months: $1,541.18

Summary of Key Terms:

• Purchase Price: $215,000

• Down Payment: $43,000

• Loan Amount: $172,000

• Interest Rate: 6.5% (fixed)

Initial Terms (First 24 Months):

• Monthly Payment: $1,573.39

• Balloon Payment Due at Month 24: $78,556.96

Re-Amortized Terms (Final 60 Months):

• Remaining Balance: $78,556.96

• Monthly Payment: $1,541.18

Additional Conditions:

1. Prepayment Penalty: None. The buyer may pay off the remaining balance at any time without penalty.

2. Late Payment Penalty: A late payment fee of 5% of the overdue amount will apply if payments are more than 10 days late.

3. Loan Security: The property will serve as collateral for the seller-financed loan.