enero2k 0 Report post Posted June 18, 2007 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 Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 19, 2007 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. Share this post Link to post Share on other sites
enero2k 0 Report post Posted June 19, 2007 Thanks Micheal for clearing that up. Share this post Link to post Share on other sites