Lease To Purchase Option on a home I own that still have a mortgage?
I am in the process of buying another home and I am thinking about renting out my current house beside the option to buy to my current roommate. I will still have a mortgage on my ripened house in addition to the unmarked house mortgage. I have seen that near the lease to purchase agreements there is an agreed upon percentage of the rent payment to be exact applied to the purchase of the home. At first I thought about charging $1300 a month and applying $1000 a month toward purchasing the home. But since it is still on a mortgage most of the rent payment will not move about toward the principal. What percentage should I change it to? My mortage on my current house is $1000. Thanks.
Answers:
the lender can call your mortgage due contained by full because you no longer reside in the property as you agreed to when you took the mortgage. Consult with a legitimate estate attorney before you do anything
Since it is a friend(?)/current roommate, it would be generous of you to credit the difference between the mortgage payments and the rental payments towards the be a foil for of the purchase price. I would turn it around and credit her $300/month of the $1,300 towards the sales price. What about the taxes and insurance? Are the included contained by the $1,000 mortgage payment?
You may want to include and escalation clause in the preference agreement as well. For instance, he/she has the choice to buy at one price for the 1st year and the price goes up 2/3/5% each year within after. That gives them an incentive to take you out more like lightning.
I hope this helps. Source(s): 7 years lending experience
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Answers:
the lender can call your mortgage due contained by full because you no longer reside in the property as you agreed to when you took the mortgage. Consult with a legitimate estate attorney before you do anything
Since it is a friend(?)/current roommate, it would be generous of you to credit the difference between the mortgage payments and the rental payments towards the be a foil for of the purchase price. I would turn it around and credit her $300/month of the $1,300 towards the sales price. What about the taxes and insurance? Are the included contained by the $1,000 mortgage payment?
You may want to include and escalation clause in the preference agreement as well. For instance, he/she has the choice to buy at one price for the 1st year and the price goes up 2/3/5% each year within after. That gives them an incentive to take you out more like lightning.
I hope this helps. Source(s): 7 years lending experience
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