Inflation and The Private Mortgage Buyer

2009 July 11

Fear of inflation is a big worry for private mortgage buyers today. It means they are worried about what the future payment streams they buy will be worth. As a result many mortgage note buyers are lowering the price they pay for long term mortgage notes and increasing the price for shorter term mortgage notes. So if you own a long term note, you might want to look at selling it before inflation fears turn into a reality. If you are considering owner financing in order to sell a home or commercial property, I would either go for a short term note or a long term amortized mortgage note with a 5 to 7 year balloon. But this is just my opinion.

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