If I Carry Paper, How Much Will I Get Each Month?
If you own your property free and clear, or nearly so, and you’re wondering what kind of monthly payment you could expect if you carried the financing (becoming the bank on your own property), just use the calculator below. Fill in the loan amount (usually 90% of purchase price), the length of the loan (usually 30 years), and the interest rate (somewhere between 6% to 9%). The taxes are not your concern, so enter “0.”
Here’s a common example: Loan amount= $360,000; Years=30; Interest rate= 7%; Annual tax= $0; Monthly payment= $2,395.09!
This would be the amount you deposit every month! Compare this to the rent your property is bringing in (after taxes, insurance, vacancies and repairs), and see how much sense it makes for you to become the bank!
