Ryanne, I hope to see several responses from agents in your area. Personally, I have seen interest rates all over the board on a contract for sale...from equal to, or close, to mortgage rates on the general market to double (or more). The down payment, credit of the borrower, condition of the house, motivation of the seller will all come into play. Not to mention, the "exit plan" for refinancing out of the contract for deed (if applicable).
Be very, very cautious about entering into a contract for deed....I am quite sure most industry professionals each have at least one horror story for either a buyer or seller on a contract for deed scenario. Certainly, involve an attorney or a real estate broker. Set it up for success for all concerned, from the onset. The pitfalls are far to numerous to lay out on an advice forum; however, if you want some general guidance you can contact me via my profile. Best to you!... more
Oh my ....you are in the same predicament as so many other people. Have you checked with your lender on the first to see if they will do a modification to make the payments less so that you can stay there? I do not know how much help they will be. You can't re-finance right now if your home isn't worth as much as you owe. I hope the lender will work with you...otherwise they will suggest a short sell. Which will do exactly what you dont want...... more