Lowest Mortgage Rates 4U

Purchase Money Mortgages A purchase money mortgage (a.k.a. vendor take-back mortgage) is not very common. In this situation, the seller of the property is also the lender of the mortgage loan. In addition to being not very common, it can be very complicated. If you consider this option, be sure to use a lawyer who is aware of the intricacies of a purchase money mortgage. If you know the seller remember that it can be difficult to deal with a friend or relative if something goes wrong. This can be a serious drawback to this kind of arrangement. However, the pros for purchase money mortgages are often worth the hassle. Sometimes sellers may take a lower interest rate than a bank. They may not require the same kind of credit check. They may also be more flexible regarding repayment terms. Just as with the more common types of mortgages, purchase money mortgages can have fixed or variable interest rates and balloons. These are negotiable items.