Creative Financing is Owner Financing

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Creative Financing is Owner Financing

Owner financing is a savvy option to consider when traditional loans present obstacles. This type of financing is an option if the Seller is willing to give the Buyer a loan, and is typically available with those who have owned their properties for many years. Owner financing is more attractive to the Seller with an above market interest rate offered, but the Buyer has the option to refinance in several years to secure a loan with a bank and lower interest rate.

Below is a mock example for a warehouse similar to 2116 Aisquith Street, Baltimore, MD 21218 amortized over 30 years. It is over 7,600 square feet. Note that these are only estimates, and taxes are likely to increase over the years.

Purchase Price: $300,000
Loan Amount: $285,000 (5% down)
Down Payment: $15,000
Closing Costs: $7,000

Estimated monthly payment including security, insurance, and taxes = $2,410

OR

Purchase Price: $300,000
Loan Amount: $270,000 (10% down)
Down Payment: $30,000
Closing Costs: $7,000

Estimated monthly payment including security, insurance, and taxes = $1,963

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