PURCHASE MONEY MORTGAGES

more+
less-

In recent years many homeowners have refinanced their mortgages to take advantage of low interest rates. When interest rates rise, frequently a home buyer will want to assume the seller’s existing loan, because new loans have higher interest rates and require significant closing costs. The problem is that the buyer can’t always come up with the remainder of the purchase price in cash, especially if the seller’s loan has been paid down or the value of the property has risen so as to create a significant amount of equity in the property. As a result, a buyer may propose that a seller take back a purchase money mortgage for the portion of the seller’s equity that the buyer can’t pay in cash.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Gary Kaleita, Lowndes, Drosdick, Doster, Kantor & Reed, P.A. | Attorney Advertising

Written by:

more+
less-

Lowndes, Drosdick, Doster, Kantor & Reed, P.A. on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×