It is not uncommon to see lenders offering deals that are too good to be true. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. This is of great benefit for anyone that does not like surprises. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.

Even though it was important for us to pay off our loan at the earliest possible opportunity, we didn’t want high, unrealistic monthly payments which we would have trouble maintaining. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. No-one likes the idea of having a mortgage when they are close to retirement, and we were no different, so it was still our hope that a 15 year fixed mortgage rate plan would still be an option. Too much pressure was placed on the early repayment of the mortgage loan.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. There were many things that lead us into making this choice. The main reason was that I found out my wife was pregnant. My wife decided she wanted to raise our child at home so I couldn’t be certain of her monthly financial commitment to our household expenses. The financial commitment per month on the 15 year fixed mortgage rate was just too high. For us it just wasn’t feasible as we would just be in over our heads. The 30 year loan repayments were considerably lower than the 15 year figures.

If we have spare cash throughout the year then we can use it to reduce the capital sum. My making just a few of these payments each year we discovered that a number of years could be taken off the mortgage term. In the long term, this is a strategy well worth pursuing if you are able. It was hard going against our preference for a shorter term, 15 year fixed rate mortgage, but we had to think about more immediate needs and abilities. Anyway, everything worked out fine despite our hesitancy.

This form can be used in Pennsylvania.

A Contract for Deed is sometimes also know as a Land Contract, Agreement for Deed, Contract Sale or Real Estate Installment Agreement. This type of Document allows the Seller to retain the title to the property and agree to transfer the title to the Buyer once all the payments under the Agreement are made and all other obligations are met. In essence, the Seller finances the purchase and holds the title or deed as security. When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed. During the period of the contract, the Buyer makes installment payments on the purchase price and is entitled to possession and equitable title to the property. The Seller holds legal title and continues to be liable for payment of any underlying mortgage.

This package contains (1) Instructions and Checklist for Contract for Deed; (2) Information about Contract for Deed; (3) Contract for Deed; (4) Disclosure Of Information On Lead-Based Paint and/or Lead-Based Paint Hazards.

Pennsylvania Contract for Deed
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More information about the uses of this form are as follows:

A Contract for Deed is sometimes also know as a Land Contract, Agreement for Deed, Contract Sale or Real Estate Installment Agreement. This type of Document allows the Seller to retain the title to the property and agree to transfer the title to the Buyer once all the payments under the Agreement are made and all other obligations are met. In essence, the Seller finances the purchase and holds the title or deed as security. When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed. During the period of the contract, the Buyer makes installment payments on the purchase price and is entitled to possession and equitable title to the property. The Seller holds legal title and continues to be liable for payment of any underlying mortgage.

This type of Agreement is useful in situations where the Buyer can’t easily obtain financing from other sources or other financing may not be even available to Buyer.

Generally, the closing costs associated with this type of transaction are usually lower than transactions involving mortgages, banks or other institutional type lenders. A Contract for Deed also allows Seller to gain interest income from the outstanding balance.

This Contract for Deed contains an AS-IS clause regarding the property. You can also choose between different payment methods i.e. with interest, with no interest, balloon payment etc…

The law in some states require a seller to make additional written disclosures, including disclosures about the condition of the house and any known problems. Check with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state. In some of these states, a seller may still be required to make the disclosure, even if the property is sold “as is” If not required by law, a Buyer may still request the disclosures and try to make them part of the contract.. To find out if your state has any mandatory disclosure laws, you can check with a local real estate broker or attorney, or call your state’s attorney general’s office. Most states with mandatory disclosure laws have created state approved forms that can be used to make the disclosure.