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enero2k

Variable Rate Mortgages

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Hi,

I searched the forum and may have missed this topic-I apologize if I did. When offering a L/O involving taking over the sellers payments, how is a variable interest rate mortgage handled as the sellers payments would fluctuate from month to month? Especially now, when the rates are slowly rising?

Thanks

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The seller's monthly payments don't affect us at all. We would have an agreed to monthly rent, let's say $1K. If the homeowner's payment is $800, then he's getting a nice cash flow each month. But if his payment is $1,200 then he's losing each month. Either way, we negotiate the best deal we can, and the monthly payment is market driven, not determined by the homeowner's monthly PITI.

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