Hi my partner and I just put in an offer of 195k on a 2 family investment with a 6% seller concession. Now our agent advised this would be the lowest offer that we could propose. My question is this would my mortgage from the lender be based on 195k or 188k, and also can someone tell me what the mortgage payment would be minus taxes and insurance. Any help would be greatly appreciated, as we had to put this offer in fast because people were looking at the property and we wanted to have our offer out there first since we can remove it if need be… Thanks again…

Your monthly PI payment depends on how many years you amortize it over, what the interest rate is, and how much the loan amount is. Also, if you didn’t write that 6% into the contract, you may not get it!
Example: $195K for 30 yrs @ 6.5%=$1,233/mo
$188K for 30 yrs @ 6.5%=$1,188/mo

To get a close idea of the monthly payment, for a 30 year note @6.5%, multiply 6.33 per $1,000 loan amount. For 6% use 6.0, for 7% use 6.65, for 11% use 9.53.

There are mortgage calculators on many real estate websites to make the process easy. I have one on mine at http://greatmdhomes.com/mortgage_payment.htm. If you don’t want the taxes and insurance included, just set those values to zero.

Thank you for the response. Basically what I did was ask the agent what was the lowest offer I could offer on the property because it was literally immaculant. I had her put in an offer of 195k with a seller concession which she said would cover about 10k so I’m presuming that’s 6%. Now she said that would make my mortgage 188k. Is that correct, and if I’m figuring my mortgage payment would I go on the 195k or 188? Any help would be greatly appreciated, and thank you for your mortgage calculator

I read your initial question and then this added info; then I read your initial question again. It hard for me to understand what is going on – maybe I’m a dummy. 1) Is there a written (proposed or signed) Sales Contract? 2) If there is, then what does it say? a) Selling price of $195K and b) “Seller to pay what ???”. Or is this just verbal? If it’s verbal, then I would find out from the agent what is meant by “seller concession” and write it into the contract. If the agent does not know, I would get another agent.
If the agent is doing all of this verbal, I would start insisting that the proposed Sale Contract be in writing when presented to the Seller.

The sale price on the contract is going to show 195K so if you were getting 100% financing, that would be your mortgage amount. If your lender requires you to put something for a downpayment, then you would subtract that from the 195K and that would be your mtg amount. It sounds like the seller concessions are the amount that they will contribute to the closing costs (10K).