I have an owner finance offer in my property below and not clear how this would work.
1) Are they saying that I will be fully paid in 5 or 8 years? So the monthly payment would change later on? I guess that’s what the balloon payment is?
2) Will my existing loan be transferred to another provider?
3) I am currently in escrow which includes insurance and taxes, so the buyer should then be paying for the insurance and taxes is that right so I would have to have a different loan?
4) What are some things to watch out for with these types of transactions?
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OPTION 2 (Owner Finance) with a 5-year Balloon Payment:
Purchase Price: $165,000
Down Payment: $37,000
Terms for the remaining Balance: Seller to carry back balance @6% APR with Monthly Interest and Principal Payments of $767.42 with a total amount of $205,155.02 being made in 5 years by Seller.
Amortized Over 30 years with a 5-year
BalloonBuyer Pays all closing costs
OPTION 3 (Owner Finance) with a 8-year Balloon Payment:
Purchase Price: $170,000
Down Payment: $45,000
Terms for the remaining Balance: Seller to carry back balance @ 8% APR with Monthly Interest and Principal Payments $917.21 with a total amount of $246,700.62 being made in 8 years by Seller.
Amortized Over 30 years with a 8-year Balloon
Buyer Pays all closing costs To close in 30 days or less.
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