Seller Financing Calculator
What is Seller Financing?
Seller financing, also known as owner financing, is an alternative to traditional bank loans where the seller of a property finances the transaction directly with the buyer. Buyers typically make monthly payments directly to the seller, including interest, over a pre-agreed term. This type of financing is often used to facilitate property sales when traditional loans are unavailable or less favorable.
How to Use the Seller Financing Calculator?
- Enter the total loan amount in the “Loan Amount” field.
- Input the annual interest rate (as a percentage) in the “Interest Rate” field.
- Provide the loan term in years in the “Loan Term” field.
- Optionally, input the down payment amount in the “Down Payment” field.
- Click the “Calculate” button to view your results, including monthly payment, total interest, and total payments over the loan term.
- Read the provided explanation to understand the calculation process and its financial implications.