Posted by Bill K. (AZ) on May 04, 1999 at 17:27:00:
There’s not much information to go on here. The next thing I would do is find out the seller’s motivation. It sounds like his motivation is to take advantage of someone.
Let me point out the one major problem I see here:
$6,000/month for a $420,000 loan??? On a 30-year loan, that’s about 17% interest.
If you qualify, a new 30-year loan shouldn’t cost you more than $3,000/month. Even a new 15-year loan would cost you no more than about $4,000/month.
Your seller doesn’t sound very motivated. He wants more than 10% down AND 17% interest. Proceed cautiously. I wouldn’t seriously consider the seller’s idea of financing. Unless this home is WAY below market value, this doesn’t appear to be a deal by any stretch of the imagination.
Bill K. (AZ)