If you’ve studied seller financing or have a mortgage note that you’re ready to sell, then you’ve probably already come across the terms “face rate” and “discount.” Let’s do a quick overview of these two important terms. What is the Face Rate of a Note? The “face rate” is the interest rate being charged to the borrower as specified on … Read More
Note Rates – What’s the Big Deal?
The interest rate a seller agrees to accept when seller-financing a property to a buyer can have a dramatic impact on the note’s future value to investors. Unfortunately, many sellers don’t give this important decision proper consideration. The fact is that the note’s “face” (interest) rate is a very big deal … here are a few reasons why! Inflation Hedge … Read More
