Posted by Natalie-VA on October 02, 2008 at 09:01:29:
You’ll probably save around $55 per month in interest with scenario 2, but you could get half that back if you had that 10k earning interest in a decent CD. I would compare that to any additional legal or recording fees that you might incur by having to use the extra collateral.
–Natali
which is better? - Posted by Bill (WI)
Posted by Bill (WI) on October 01, 2008 at 11:37:02:
I know it depends on the buyers situation but what do you think is better.
purchase price $205,000
scenario 1:
$205,000 financed at 6.7% for 30 years.
scenario 2:
$195,000 financed at 6.7% for 30 years.
seller carry of $10,000, 0% interest, 10 payments of $1000 starting 4 months after closing.
scenario 1 would require me to use another property as collateral. scenario 2 would not require the other property as collateral but would eliminate my cash flow for the 10 months of payments. THanks.