Monthly Payment Stability - Utah Home Loans

By: Robert A. Hulme - Realtor - Loan Officer -Utah County, Including Provo, Orem, Pleasant Grove, American Fork, Lehi, Highland, Alpine and Cedar Hills, Eagle Mountain, Payson, Saratoga Springs, Spanish Fork, Springville, Mortgage Xpress, Agent

In today's Housing market many Sellers have had to use their imagination to try and sell their homes. One of the programs that is starting to be used more often is that of Seller Financing. The way this can be used is to "carry back" a second mortgage to help facilitate the purchase of the home. This can happen when the seller does not need all the proceeds from their sale in order to purchase their next home. The advantage to the buyer is that by combining the down payment and the second mortgage from the seller, you may be able to avoid paying mortgage insurance and save yourself some money.

If such a carry-back is part of your offer, you should include the terms you wish to pay on such a second mortgage. Keep in mind that your first trust deed lender needs to know this information so they can underwrite your loan, and they have certain minimum requirements. The minimum term of the second mortgage can be five years. The minimum payment can "interest only". Longer mortgage terms and payments that also include principle are also acceptable.

One of the major advantages of owning your own home is the stability of having a stable monthly mortgage payment. In today's ever changing housing market, with the rise in foreclosures, renting a home has been the only option for many families. The supply demand for rental properties has increased the monthly payments for many renters. As a general rule rent will increase quite often even during a stable housing market.

With a fixed rate mortgage, the home owner has the luxury of establishing a stable monthly payment. This along with the tax benefits discussed in a previous blog makes for a much more desirable housing payment scenario.