Need Help Quick! - Posted by Larry(MO)

Posted by Irwin on May 20, 1999 at 18:57:55:

Larry: If I had known you needed help this fast I’d have taken off work earlier in the day :-).
I think you have a substantial math problem to solve here, and I’m not quite sure how to do it. I know that you should always keep the principal balance of your mortgage lower than the payoff on their contract. Otherwise you might get caught having to come up with a lump sum in cash to pay it off. Also, with the large down payment, their monthly payment to you could be lower than your mortgage payment, which would require you to come up with cash each month. You’re going to have to work with amortization schedules for both loans, and perhaps an HP calculator (plus someone smarter than I). Maybe you should take their d/p, apply all of it to your mortgage and then refi the balance. The current mortgage holder might be willing to do it. That way, you can get your mortgage more in synch with their contract. Hope I haven’t cornfused you too much.

Need Help Quick! - Posted by Larry(MO)

Posted by Larry(MO) on May 20, 1999 at 15:41:14:

Just got an offer on a house of 45000. I owe 38000 on the place with 8.5 percent interest and buyers are willing to pay 20000 down at 9 percent.(contract for deed)

My question is: How do i need to make this work?

I dont want to end up in a situation where they are payed out before I am. there is also real estate commission.

What do i need to do to make this come out in the end?

Can i safely use some cash for other investments?

They dont plan on paying out for 15 years.
Thanks in advance. Larry

They are wanting to make this offer at 4:00 it is now 3:24
sorry about the short notice.