-
Hawkins and Guinn PS
Distance: 0.9 Mi225 W Main Ave Ste 100
99201-0208 Spokane -
Rustic Sparkle Properties, LLC
Distance: 1.1 Mi
99208 Spokane -
K C Properties Inc
Distance: 1.1 Mi1210 N Argonne Rd Valley
99212 Spokane -
Kristin Vanos
Distance: 1.1 Mi1237 W SUMMIT PKWY
99201 Spokane -
Monique Thielman
Distance: 1.1 Mi101 W North River Dr
99201 Spokane
Website Links
Description
Seller or Owner Financing occurs when the seller of the property agrees to receive monthly payments from the buyer in place of the buyer obtaining a loan from a traditional lending institution. For example, assume you sell your property for $50,000, and the buyer has $5,000 for a down payment.Under a traditional financing arrangement, the buyer would apply and qualify for a $45,000 mortgage from a bank or mortgage company, paying the seller the balance of the sales price with the loan proceeds.When seller financing is used in this example, the seller will “hold” the mortgage and receive monthly payments from the buyer. The repayment terms (interest rate, term or length of repayment) are negotiated between the buyer and seller. In the above example, assume the parties agree to a 9% interest rate with a 20-year repayment term (also known as the amortization term). These terms would require the buyer to make 240 monthly payments of $404.88 to the seller. Over the twenty-year loan period, the seller would receive $97,170.40 in principle and interest payments.