Canton and Plymouth home sellers and buyers are finding that it is much harder to obtain a mortgage today than it was just last year or even just last summer.
These days having the owner of the property hold a second or even finance the whole sale on a Land Contract is becoming as popular as it was years ago.
The obvious benefit to the home buyer is the fact they can finance the house without the usual hoops to jump through. Additionally it is often much easier to deal with an owner than a bank and the cost to finance is much lower.
So what are the benefits to the homeowner?
First and foremost you get the house sold!
Other benefits to consider with Owner Financing is the steady income you will receive from the mortgage payments. Right now with all of the market volatility that we are experiencing, this could be your one steady interest earner – in some cases up to 7% or more! This is a guaranteed return as long as the buyer continues to make their payments.
If you don’t need the proceeds from the sale of your home immediately, seller financing can be a great investment. You might also consider partial seller financing. Most buyers will have a cap on their loan allowance, and as the seller you can consider financing the rest at a higher interest rate than normal. Keep in mind that as the seller you would not have to hold on to this mortgage forever, as it can be sold on a secondary market.
Although the benefits to both sides are many the pitfalls can also be numerous. The Bittinger Team has the experience necessary to guide you through this lucrative way of selling your home. Call us today for answers!
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Great News! Fixed-rate mortgages are currently at a ten year low! Call us today and find out just how this can benefit you today!