The Benefits of Purchase Money Mortgages (PMM)

by | Jan 25, 2023

Understanding the benefits of a Purchase Money Mortgage (PMM)

A Purchase Money Mortgage means that the seller steps into the role of the bank by holding the deed to a property after it is sold. The buyer makes the monthly mortgage payment directly to the seller. The terms are set prior to closing and include the monthly interest rate and payment, length of the loan, principal and interest or interest only, and the balance due at the end of the term.

Seller Benefits:
1. The seller can make substantially more interest than a savings account can provide.
2. If, for some unforseen reason, the buyer is unable to make the payments, the property goes back to the seller.
3. If the property needs substantial repairs it can be more attractive to buyers willing to do the work.
3. The property is available to more potential buyers.

Buyer Benefits:
1. The property could fit the needs of buyers with challenging credit.
2. The possibility of a lower down payment makes the property more attractive.

What Clients Are Saying

“We did speak to another agent before we decided to go with Jen and the agent took two days to respond to my email! It was very obvious from the start that Jen is the type of Realtor® we want to work with. Highly recommended!”

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Jen McGeehan

Phone: 808.747.2365
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I am an adventurer by heart, never letting too much dust settle under my feet. But, I am also a nester, a woman who loves her home, garden, animals, family, and whatever career I happen to be in. In my latest adventure, I’ve successfully merged over 46 years of varied work and life experience into a real estate career that focuses on the goals and dreams of my clients. Are you interested in moving to the Big Island of Hawaiʻi? I’d love to talk with you about your dream goal, and help you achieve it!

Integrity is the cornerstone of my business! 

Coldwell Banker | Island Properties