The seller is offering Seller Financing ? Is this an advantage for me the buyer ?
The seller is offering Seller Financing ? Is this an advantage for me the buyer ? Is 9% a good interest rate ?
The seller is offering Seller Financing ? Is this an advantage for me the buyer ? Is 9% a good interest rate ?
9 % is a high rate if you have a decent down payment, good credit, and a reliable job that pays well. Rates depend on the length of the financing, too. Right now fixed mortgages in the East are about 6% for a 30 year mortgage.
The buyers who benefit most from seller financing are those who have a poor work record, credit card delinquencies, bankruptcies, etc. It can benefit buyers who have a short work history and little established credit. BTW, no seller is going to take a huge risk on someone who has a poor history of paying their debts. The seller stands to lose too much money.
If your credit and job history are stable, get a mortgage through the bank. You will get a better rate.
The advantage of the Seller carrying your note is that you do not have to qualify for a mortgage, which is a pain and can cost you some cash out of pocket. 9% is not anything that I would be excited over at all, lower rates are available. Interest rates are one factor… the bigger concern is the type of interest rate, i.e. does it vary or is it fixed, what are the terms of the debt instrument he is offering you… lots of questions need to be addressed in a major purchase like this… just thoughts, good luck
You have more ways to get the home you want to have.