Posted on: 13th Sep, 2009 04:27 pm
I am considering owner financing a house on which I have a mortgage. My balance is 80k. I am asking 180k, 9.5% interest, 10% down payment. Is that reasonable? How can I get my lender to agree to a wrap around?
The terms of the loan will depend on the situationand buyer credit and ability to pay back
If you have a good credit and a stable job and if you are going to take a loan along with your spouse it will convince the lender.
Hi rg,
You need to talk with your existing lenders regarding the wrap around mortgage. Wrap around mortgages are good financing options, but it is hard to say if your lender would approve of this, given the current condition of the economy.
The terms of the loan will depend on many things like the buyer's creditworthiness etc. But I think a 9.5% interest rate is probably a bit high, given the fact that the current mortgage rates on fixed mortgages are quite low. The buyer might not want to pay such high interest rate when he can get a fixed rate home mortgage at a much lower rate.
You need to talk with your existing lenders regarding the wrap around mortgage. Wrap around mortgages are good financing options, but it is hard to say if your lender would approve of this, given the current condition of the economy.
The terms of the loan will depend on many things like the buyer's creditworthiness etc. But I think a 9.5% interest rate is probably a bit high, given the fact that the current mortgage rates on fixed mortgages are quite low. The buyer might not want to pay such high interest rate when he can get a fixed rate home mortgage at a much lower rate.