Owner finance Governor has a property that can be sold in x How computers if this loan to 15 / 20 / 30 ...
Owner finance
Say there is an asset that can be sold in x
How to calculate if this is a loan to 15 / 20 / 30 years
How do you know what is common in the market?
The answer - according to the amount of the monthly repayment is inaccurate because it is possible to make a loan for 20 or 30 years, play a little with the interest rate - in one percent - and reach similar results
Is a property necessarily cheaper to be 20 for years? (Obviously the answer is: depending on what is appropriate for the sides 2 - but the title of the seller is better than the sea that the proceeds will be higher)
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- If you go to starteasy.com mortgage calculator they will give you the breakdown month by month how much money goes to interest and how much principal
- A seller's assumption worth as many years as possible is not necessarily correct… Could it be that his strategy is to go out with the capital after 5 years, or less…?
In general, you need to set rules for yourself. For example, you want to have a $ 300 margin each month. Now play with the numbers as it suits both sides, the main thing that will leave you with this interval… may be that the seller will want a low DP in exchange for a high interest rate, may be reversed… there may be many options.
The monthly return can be calculated in many sites. I use a mortgage calculator of the National Bank - What is the advantage for the seller when they are an owner finance?
What is the advantage for the seller when they are an owner finance?
A seller's assumption worth as many years as possible is not necessarily correct… Could it be that his strategy is to go out with the capital after 5 years, or less…?
In general, you need to set rules for yourself. For example, you want to have a $ 300 margin each month. Now play with the numbers as it suits both sides, the main thing that will leave you with this interval… may be that the seller will want a low DP in exchange for a high interest rate, may be reversed… there may be many options.
The monthly return can be calculated in many sites. I use a mortgage calculator of the National Bank
If you go to starteasy.com mortgage calculator they will give you the breakdown month by month how much money goes to interest and how much principal