I am selling a house , Owner Finance on a wrap.
Buyer has no credit history . He has a down payment of 5000.00. What would be a fair intrest rate to charge in texas. (Bell County)
Howdy there.
Take you current morgage rate, add a few points and viola...that's their interest rate.
If your current rate is 6.5%, charge 9%... Or whatever is fair. Your buyer doesn't care what the interest rate is, just what thier monthly payment is going to be. You make a couple bucks every month, and just as important, when they eventually refinance, you don't end up owing more than them...
Hope this helps.
Sam
Howdy there.
Take you current morgage rate, add a few points and viola...that's their interest rate.
If your current rate is 6.5%, charge 9%... Or whatever is fair. Your buyer doesn't care what the interest rate is, just what thier monthly payment is going to be. You make a couple bucks every month, and just as important, when they eventually refinance, you don't end up owing more than them...
Hope this helps.
Sam
Thanks for the help, God Bless.