Updated over 3 years ago on . Most recent reply
Standard Interest Rate On Seller Financing
I recently (within the last 3 months) bought a house that was established as my primary residence, and locked in a 2.75% 30 year fixed on it. I’ve found another, significantly more expensive, property that I’d like to also buy as a primary residence that’s in the same area. I qualify for financing, but in speaking with my mortgage broker he worried that in order to make the new home my primary residence, the underwriter could require that the home I’ve already purchased be refinanced as an investment property, which would raise the interest rate to over 4%, plus closing costs. This seems like a waste.
The seller on the new house I want to buy has indicated that they may be willing to carry paper. My thought is that this could solve the problem, provided that it’s typical for interest rates on seller financing to match market mortgage rates. Is that the case?
To summarize, I want to have two houses financed as primary residences so that I can get the lowest possible interest rates, and am wondering whether seller financing could be the solution.
Thanks!
Most Popular Reply
@Matt Kautz dude...Seller Finance 110% on this one. The seller is willing to carry? Seller Finance all day! Now it's just a matter of negotiating a good set of terms for you. Happy to help on this if needed. Or I'll buy it and give you an assignment fee ;)