Lowest Morgage Rates 4U

Purchase Money Morgages A purchase money morgage (a.k.a. vendor take-back morgage) is not very common. In this situation, the seller of the property is also the lender of the morgage 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 morgage. 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 morgages 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 morgages, purchase money morgages can have fixed or variable interest rates and balloons. These are negotiable items.