LENDING >> SELLERS

Owning real estate has proven to be a great investment for many homeowners. How you finance the purchase and use the equity can have significant additional benefit if you know your options.

Home Equity Considerations / Refinancing Your Home - As your home increases in value and your mortgage loan(s) are being paid down, your equity in the home grows. Read about the issues and your options when you consider refinancing your home.

How much interest can I save buy increasing my current mortgage payment?
Use this Mortgage Payoff Calculator to calculate your savings.

Seller Held Financing

Seller held financing is when the seller, instead of a bank or other institutional lender, provides the financing for the purchase. They do this with the carrying back of a note, which is secured by the property. Most often the seller will take a first lien, or priority position with respect to the property, although in some cases the seller has been forced to take a second mortgage (a second lien on the property) in order to help complete the transaction.
Many of the purchasers who require seller financing are well qualified but have not been able to obtain a mortgage from a bank or other institutional lender for a variety of reasons. This is particularly true in today's economy where financial institutions have become increasingly stringent is providing financing to individuals.

Swing Loans

A short-term loan that allows a homeowner to purchase a home before selling the former residence. Also called a Bridge Loan or Gap Loan

Wrap Mortgage

A wrap-around mortgage is a loan transaction in which the lender assumes responsibility for an existing mortgage.

For example, a seller who has a $100,000 mortgage on his home, sells his home to a buyer for $195,000. The buyer uses a $20,000 down payment and borrows $175,000 on a new mortgage. This mortgage "wraps around" the existing $100,000 mortgage because the new lender will make the payments on the old mortgage.

Additional Information & Resources

• Check out these Informational Reports on lending issues.
• Online Resources
• Confused by all the different loan programs out there. Use this link to Standard Loans Defined
• Index of Standard Loans
• Overview of Loan & Mortgage Services
• Loan & Mortgage Article Library
• Not sure what a particular term means? Visit our Glossary of Mortgage Terms

At My Twin Cities Home we have available over 100 different sources of funding for your needs. We will seek out the best program to match for what you are looking for. Balancing finances with the best loan product for you for your long term financial health.