Seller Financing Calculator

How to Use the Seller Financing Calculator

This guide will walk you through the steps to effectively use the Seller Financing Calculator. It is designed to help estimate various aspects of seller-financed property transactions, including payments, interest, and balloon payments.

Step 1: Enter the Property Price

Begin by locating the Property Price ($) field. Enter the total price of the property you are considering. Note that the value should be a minimum of $1000, as smaller amounts may not be feasible for seller financing.

Step 2: Specify the Down Payment Amount

In the Down Payment ($) field, input the amount you plan to pay upfront. While there is no lower limit for the down payment, it is required to proceed with the calculation.

Step 3: Input the Annual Interest Rate

Find the Annual Interest Rate (%) field and enter the agreed-upon interest rate. This should be a percentage between 0.01% and 100%. Make sure to include up to two decimal places for precision if necessary.

Step 4: Set the Loan Term

Next, fill in the Loan Term (Years) field with the number of years over which you will repay the loan. The loan term must be between 1 and 30 years.

Step 5: Decide on a Balloon Payment

In the Include Balloon Payment? field, choose whether or not a balloon payment will be part of the financing plan. Select Yes or No from the dropdown menu.

Step 6: Specify Balloon Payment Due Year

If you chose to include a balloon payment, enter the year in which it will be due in the Balloon Payment Due (Years) field. This value should fall within 1 to 30 years. If no balloon payment is selected, you can leave this field empty.

Step 7: Review the Calculated Results

• Loan Amount: This is calculated as the property price minus the down payment. It represents the principal amount to be financed.
• Monthly Payment: Displays the estimated monthly payment amount based on the loan amount, interest rate, and loan term.
• Total Interest: Shows the total interest to be paid over the loan term.
• Total Payment: Represents the entire amount paid over the duration of the loan, including both principal and interest.
• Down Payment Percentage: Provides the percentage of the property price covered by the down payment.
• Balloon Payment Amount: If applicable, this field will display the amount of the balloon payment due at the specified time.

By following these steps, you can effectively make use of the Seller Financing Calculator to evaluate potential seller-financed property transactions.