Comparison of offers with owner financing
A FREE spreadsheet from Mortgage-investments.com
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This handy spreadsheet helps you to evaluate the effect of owner financing with different purchase prices, down payments and term You may want to make more than one offer at the same time with different terms and prices. This makes it harder for the seller to reject your offer. NOTE TO SELLER. This spreadsheet also helps you compare the value to you of seller financed offers. You can see that sometimes a higher offer is actually less expensive to the buyer if the terms are generous. Of course these scenarios require that the mortgage be paid to maturity.
Investor cost of funds, fair rate All cash offer 1 Offer amount Pay at closing Still owing Terms Interest rate no. of months monthly payment Cash value today of payment stream at fair interest rate above Total true property price 120,000 0 0 120,000 120,000 0
8%
offer 2 130,000 30,000 100,000
offer 3 120,000 20,000 100,000
offer 4 140,000 10,000 130,000
4% 120 1,012.45 83,448
7% 240 775.30 92,690
5% 180 1,028.03 107,574
113,448
112,690
117,574
Note. Closing costs have been ignored as they vary from state to state. A higher mortgage amount will often cost more in documentary stamps and other taxes.
and hard money loans.
wn payments and terms. rder for the seller anced offers.