Finance category
Mortgage, loan, investing, tax, and money calculators.
Owner Finance Note Value Calculator
Sellers who carried back a note can monetize it by selling to a note buyer. Sale price = PV of remaining payments at the buyer's target yield, minus any adjustments for seasoning, LTV, and borrower credit. This calculator sizes the cash offer.
Present value (cash offer)
$153,605
Discount from face
$26,395
Discount %
14.7%
Buyer target yield
9.00%
How the math works
$180K note, 7%, 264 mo left, 24 month seasoned, 72% LTV, 690 FICO, 1st lien. Buyer yield ~9%. PV ≈ $143K. Discount ~20% from face.
To improve offer: gather 36+ months of seasoning, refresh appraisal documenting lower LTV, provide updated borrower credit. Each factor tightens yield 0.5-1.5% — materially higher cash offer.
How to Use
- Enter current note balance, interest rate, and months remaining.
- Enter seasoning months (borrower's payment history), LTV, and buyer's target yield.
- Apply credit adjustments for borrower strength.
- See present value cash offer and discount from face.
Frequently Asked Questions
How much do note buyers discount?
Seasoned (24+ mo of on-time payments), low LTV (60-70%), strong credit: 15-25% discount. Unseasoned or high LTV: 30-45%. 1st lien is better than 2nd; SFR better than rural land; owner-occ better than investment.
What's a partial note sale?
Sell only the next N months of payments. Seller keeps the tail. Partials typically get better pricing per dollar sold (tighter yield) and preserve long-term income. Most flexible structure.
Can I sell to institutional buyers?
Institutional note buyers (banks, private funds) require minimum balance ($75K-$150K+), seasoning (12+ months), and documented payment history. Retail note buyers will take smaller/less seasoned notes but at bigger discounts.
What documents do note buyers want?
Original note + deed of trust/mortgage, payment ledger, current appraisal or BPO, borrower credit info, title insurance confirming 1st lien. The more complete the file, the better the offer.
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Owner Finance Note Calculator
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