How to Figure a Payment for a Land Contract

You can display the monthly payment for a land contract.

A land contract provides details between a buyer and a seller of real property, which have been agreed upon. A home buyer, who might have difficulties obtaining a traditional mortgage, could benefit from a transaction that enables the seller to create and collect payments on an agreement to buy property. Land contracts can be used on undeveloped parcels of land, residential dwellings or commercial property. Land contracts are often referred to as land installment agreements.

Instructions

1. Create a list of items that will be financed within the land contract, such as the purchase price, recording fees, appraisal and inspection costs.

2. Subtract the buyer's deposit from the total amount that requires financing.

3. Use a mortgage calculator to figure the payment for a land contract. Enter the amount financed, rate of interest and the number of months to pay off the loan (see Resources). Compute the payment for your land contract.

References

• FinancialWeb: What is a Land Contract?
• LegalMatch: Land Contract Lawyers

Resources

• Read this Article in Spanish
• Bankrate.com: Amortization Schedule Calculator