seller financing - Posted by Michael

Posted by Tim(OH) on May 24, 1999 at 15:56:26:

If you bought a house and gave a mortgage with a balloon payment, you come up with the balloon however you can, typically refinancing. You could get the refinancing from any number of sources such as a bank, a mortgage broker, from your own cash reserves etc.

Qualifying for refinaning is really not much different from qualifying when you first buy the house. They would take into consideration your credit rating and source of income like any other lender. The “Gamble” you are taking when you finance with a balloon payment is that you will have to keep your credit good so someone will loan you money, not to mention the chance that the cost of money may be much higher in five years then it I today.

As for factoring in the principal on a mortgage at 6%, you use either an amortization table or a financial calculator. Someone else has done the work for you
long ago. Amrotization tables are readily available in course books etc.

I’m no expert, but I hope this helps.


seller financing - Posted by Michael

Posted by Michael on May 24, 1999 at 14:45:44:

If I was to purchase a property with seller financing, lets say a note at 7% interest with a balloon payment in 5 years, how would I get that balloon payment? How would I qualify for the refinancing? Through the income the property produces? Is this how it is done?
Lets also say I was to buy a property on an installment note, say at 6%, for 30 years. How do I factor in the principle?