Seller Financing Primary Residence

[Mitch Huffman]

Hey there BP! 

I am looking at seller financing our new home.  The deal is as follows.  

Purchase Price: $625,000
Interest Rate: 5.5%
Loan Length: 60 Months
Downpayment: $40,000

Monthly Payment: $3,321.57 (Based on 30 year Mortgage, $585,000 Loan Amount)
Total Paid in 60 Months: $199,294.20

Total Interest Paid: $25,400.77
Total Principal Paid: $173,894
Total Paid: $199,294.77

Balloon Payment Due After 60 Months: $411,106

Buyers will refinance on or before October 2027

Seller has a current mortgage on the property.  We want to give them what they are asking, so just taking over their payments subto won't be enough.  

How can we structure this deal and what paperwork do we need? 

Thanks!