Home sellers can finance their low-rate mortgage and generate income

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A rarely used wraparound mortgage can yield 2% of the loan balance in addition to the home sales profit.

Contemplating selling your home? Are you out of your mind?

Think of the 30-year fixed rate mortgage of 2.5% you landed in 2020 or 2021. Gosh, today’s rates are at least 6.25% — way more than double the rate you lassoed back in the day.Does leveraging your lifetime low 2.5% mortgage rate by charging say 5.5% to a homebuyer sweeten the seller pot for you? The buyer pays you. You pay the mortgage loan servicer at the 2.5% rate from the monthly mortgage billing statement you continue to receive. You pocket the difference.We’re talking $1,500 income per month or roughly $18,000 per year, assuming a 3% rate spread between your existing note and your buyer upcharge. That’s in addition to whatever your home sale profit is.

—Record the sale with the county recorder’s office so the buyer legally owns the property. Purchase title insurance. Have the buyer pay for homeowners’ insurance.—If the buyer defaults, the seller can only foreclose on the property’s equity . The seller cannot foreclose on the underlying note.

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منبع: CNN - 🏆 4. / 95 ادامه مطلب »