I posted this already in financial planning and had no response, I could use your help.
I want to purchase 10 acres of land in Eastern Washington to eventually build a house. The parcel I want to purchase is 120k. The seller is offering.
” Owner financing is available with 20% down, 7% interest, 20 year amortization and an 8-year balloon payment (due in full). “
My questions are
Is it best to just pay the 20% down, and wait for the balloon payment at the end to pay it off?
If I put more money each month to help pay down the loan, is it only going to the interest and not the principle in a balloon payment?
Do I have to take the balloon payment, or am I allowed to use my own financing to find a better rate?
Is there better options to find funding to pay for the land?