Posted by Bill Jacobsen on December 20, 2006 at 14:26:22:
In a lease, the rent payments go to the owner of the house. They may be more, less, or equal to your mortgage payments which you pay to the bank.
At closing you receive the predetermined price of the house less the amount that is still owed on the mortgage. If you have been paying down the mortgage you get the benefit of receiving more cash at closing.
Bill
Lease Option - Posted by Eddy
Posted by Eddy on December 19, 2006 at 23:21:27:
In a lease option, the monthly payment is going towards the mortgage (principal + interest). At the end of the term a year or two later you have reduce the mortgage amount not by much is this case because it?s only a year but what if it was longer the amount would be more significant but you have already predetermine the selling price of the house. My question now is, from the point that you have decided on the selling price and the actual closing date you have made payment on the mortgage, which is the lent of the lease option are does payments for the seller to keep or there is a way around so the investor can keep it.