Enter your loan amount, interest rate, and loan term into the calculator to determine your monthly payment.
Seller Financing Calculation Formula
The following formula is used to calculate the monthly payment for seller financing:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate) ^ -Number of Payments)
Variables:
- Loan Amount is the total amount borrowed ($)
- Monthly Interest Rate is the annual interest rate divided by 12 (%)
- Number of Payments is the loan term in months
- Monthly Payment is the amount paid monthly ($)
To calculate the monthly payment, use the above formula by plugging in the values for loan amount, interest rate, and loan term.
What is Seller Financing?
Seller financing, also known as owner financing, is a loan provided by the seller of a property to the buyer. This can be an attractive option for buyers who may not qualify for traditional bank loans. The seller acts as the lender, and the buyer makes payments directly to the seller according to agreed terms.
Benefits of Seller Financing
Seller financing offers several benefits:
- Flexibility: Terms of the loan can be more flexible than traditional loans.
- Speed: The process can be quicker than going through a