Shorts
Owner Financing With No Bank? Ask These 3 Questions Before You Sign.
July 17, 202635 seconds
Owner financing means no bank and no credit check, but a balloon payment can leave the whole balance due at once, and interest can push the total 30 to 50 percent above the asking price. Ask three questions before you sign.
Transcript
Folks, no bank, no credit check. Owner financing sounds great, until the balloon hits. Three questions. One: is there a balloon payment? Two: what's the total cost with interest? Three: when do I get the deed? A balloon means small monthly payments for a few years, then the whole remaining balance due at once. And interest adds up. The total you pay can end up 30 to 50 percent higher than the original asking price. Get the total number in writing. Everything's in the description.
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