so my fiance and i found a nice little home being sold by a woman who wants to sell her home and carry a note.
she clearly stated she wants to carry note because she does not have a mortgage on property and does not need the money now. she mentioned something about asking the going rate for interest and would prefer a 20 year mortgage, but 30 year would be acceptable.
i threw some numbers around.
what do you all think about deferred interest for say, 24 or 36 months - say a 7% loan with 2.5% being deferred for 36 months?
I just want a lower monthly payment.
oh yes and she would accept 10% down.
it’s sounds like a very advantageous opportunity for my fiance and i, because
- we only need 10% down
- Closing costs would be about 4 - 5k cheaper.
- the Interest will still be able to be claimed (as per seller).
- no prepayment penalty.
the question is, how do I sell the seller on the idea of allowing the 2.5% of the loan to be deferred for 3 years???
I thought of maybe paying a marginal “fee” to defer the interest. And then maybe a clause in there for another opportunity to defer it further down the road.
help me out. any other creative thoughts?