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Private Lending & Conventional Mortgage Advice

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Marcell Z.
  • Involved In Real Estate
  • San Diego, CA
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36
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Creating a Mortgage Note

Marcell Z.
  • Involved In Real Estate
  • San Diego, CA
Posted Mar 27 2015, 20:33

Hello BP community and thanks in advance for any advice provided.

I'm helping a client purchase a home and they will be receiving 100% of the purchase funds from a family member.  We need to create a mortgage note to pay the funds back to the family member.  Here are the details.

Loan Amount to be $550,000

Interest rate to be 4% fixed

Term of loan to be 30 years

My client and I were relying on the seller's chosen escrow company to handle the note creation.  I have never needed to perform such a transaction.  The escrow company created the document but came up with a monthly payment in the amount of $787.74 monthly for principal and interest.  The math doesn't add up as $787.74 x 360 months equals $283,550.  Here are my questions.

How do we determine the correct payment?

Can the escrow company impound the taxes and insurance?

I've used a mortgage calculator from Zillow and am coming up with a payment of $2,626 for principal and interest.  Am I on the right track?  

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