Interest Rates on Private Mortgages
Interest rates on private mortgages can be tricky. You want the rate low enough to entice a buyer but you want a market price if you ever need to sell to a mortgage buyer. The one thing to remember, there are plenty of eager buyers out there, so don’t give the farm away. I’ve seen mortgage notes at zero percent. Yes, I said zero. You can imagine how much that affected the discount rate. Just use common sense. You are in the driver’s seat. Just don’t sit back and not do all the stuff you should do to sell a house just because you are offering owner financing. You particularly want to work on street appeal. If prospective home buyers don’t come in, you can’t sell the home.