Does anyone know if there is a place that does special financing? I would like to pay 10,000 dollars, them in

Asked by Amy, Mabank, TX Sun May 4, 2008

five years pay 10,000 and after for 2 more years. Also making small monthly payments too. Thanks for the help.

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Don Tepper, Agent, Burke, VA
Sun May 4, 2008
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I know a place that does special financing. It's called owner financing. And you can structure the terms any way that you and the owner find mutually agreeable. If you know how to work a financial calculator, you can experiment with all sorts of scenarios. If you don't, then a Realtor probably does; an accountant certainly should know.

What you've described probably could be presented as something like an interest-only loan for 11 months, then a small balloon for the principle. You'd just have to present it in such a way as to make sense and be attractive to the seller. And that might mean that the effective interest rate would be equal to or greater than current mortgage rates. Or, to work it more to your advantage, make the effective interest rate equal to or slightly greater than the amount the seller would receive if he put it into a savings account.

Talk to an accountant or Realtor (one who knows and is comfortable with creative financing and owner financing) for more information

Hope that helps.
1 vote
Bruce Lynn, Agent, Coppell, TX
Sun May 4, 2008
You can do this with most loans. Very few lenders will do what they call RECAST the loan to make the payments smaller, but you only pay interest on what you borrow, so the effect with most lenders is that the loan will be paid off earlier than expected. There are some lenders that will recast the loan as you make the large payments and therefore making the monthly payments lower after they recast. National City used to do this if they are still in business. There could be a fee to do this as well or a limit on how many times they will recast. A good broker will be able to structure the loan to the best of your advantage.
Web Reference:  http://www.teamlynn.com
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Dallas Texas, Agent, Dallas, TN
Sun May 4, 2008
Confused at what you are trying to obtain are you looking for an investment property? single family home to live in? Then it appears you want ownership for a property of $5000 per year, breaks down to $500 per month ? If you need additional assistance contact my office . many of these contracts are tricky.
Web Reference:  http://www.lynn911.com
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