Seller Financing Seller Financing is a(n) Seller Financing is a(n) Adjustable Rate MortgageAmortized Loan (most common)Balloon MortgageInterest Only Mortgage Type Seller will be given a Seller will be given a First (1st) MortgageSecond (2nd) Mortgage Loan Amount ($) Loan Amount $ This is the Total Amount being loaned by the Seller to the Buyer. Term The length of the loan. Loan Term Month(s)Year(s) Interest Rate Interest Rate % What will be the Initial Interest Rate? % This is the Interest Rate (%) that will be charged at the start of the loan. Interest Rate shall be in effect for the initial Year(s) This Interest rate (%) will be for the first (1st) payment period. Balloon Mortgage Enter the Maturity Date Enter the Balloon Payment Due Upon Maturity $ This number may be the final principal payment or the principal balance due upon the loan's maturity. Adjustable Rate Mortgage After the Initial Period, when does the Interest Rate change? EveryYear(s) During a change, how many Basis Points will it be above the U.S. Prime Rate? Basis Points Basis Points are calculated in hundredths of 1 percent. For example, an increase in 1% would be 100 basis points. What will be the Source for the Interest Rate? What will be the Source for the Interest Rate? Weekly average yield on United States Treasury SecuritiesOther Enter the Interest Rate Source Adjustable Rate (%) Limits Will there be a Maximum Limit on how much the Interest Rate (%) can increase? Will there be a Maximum Limit on how much the Interest Rate (%) can increase? YesNo For Period-to-Period and for the Entire Term of the loan. Period-to-Period | Maximum Increase Limit Basis Points above the Current Rate The maximum amount of basis points the interest rate can increase during each change. Entire Loan Term | Maximum Increase Limit Basis Points above the Initial Rate The maximum amount of basis points the interest rate can increase during the entire term of the loan. Payment Due Date When is the Mortgage Payment considered late? AfterDays The Mortgage Payment is the payment made by the Buyer to the Seller on a monthly basis. Late Payment If the Monthly Payment is Late, will there be a Penalty? If the Monthly Payment is Late, will there be a Penalty? YesNo The Penalty shall be The Penalty shall be a Percentage (%) of the Payment Amounta Fixed Fee ($) Percent (%) of Payment % Enter the Fixed Amount $ Credit Information The Buyer will submit their Credit Information The Buyer will submit their Credit Information on the Date this Addendum is Signedat a Later Date When must the Buyer submit their Credit Information to the Seller? Seller's Approval Seller must Approve or Reject the Buyer's Credit Information by Pre-Payment Penalty Will there be a Pre-Payment Penalty? Will there be a Pre-Payment Penalty? YesNo If the Seller does not want the mortgage to be pre-paid, they can create a pre-payment penalty. Write the Penalty for Pre-Payment: Real Estate Taxes Will the Real Estate Taxes be made part of the Mortgage Payment? Will the Real Estate Taxes be made part of the Mortgage Payment? YesNo If Yes, the Buyer will be required to pay 1/12 of the annual estimated taxes on the property as part of their mortgage payment to the Seller. The Seller will then be responsible for making payment for the local and county property taxes. Insurance Will there be any Insurance that will be made part of the Mortgage Payment? Will there be any Insurance that will be made part of the Mortgage Payment? YesNo If Yes, the Buyer will be required to pay 1/12th of the annual amount in their monthly payment. Buyer Selling the Property Can the Buyer sell the property without paying off the mortgage? Can the Buyer sell the property without paying off the mortgage? YesNo The Property Type of Property Type of Property CommercialResidential Property Address Street Address Address Line 2 City Please SelectAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington DCWest VirginiaWisconsinWyoming State ZIP Code Purchase Agreement Date Date of the Purchase Agreement signed between the Buyer and Seller The Buyer What is the Buyer? What is the Buyer? a Business EntityIndividual(s) How many Individuals? Choose12345678910 Business Entity's Name Individual(s) Name(s) The Seller What is the Seller? What is the Seller? a Business EntityIndividual(s) How many Individuals? Choose12345678910 Business Entity's Name Individual(s) Name(s) Date of this Addendum Date of this Addendum Next Save Save and finish later
