How Are Seller Financed Mortgage Notes Priced?
1:14 watch · September 19, 2026 · With Dawn Bearden, Moxxie Asset Group
What Determines Your Note’s Price
- ✓ Borrower credit — The person making the payments is the engine of the note. Weaker credit means higher risk, which means a lower offer.
- ✓ Down payment — At least 10% down is the floor. 15%, 20%, 25%, or 30% down lowers risk — and raises what a note buyer can pay.
- ✓ Interest rate — Notes priced roughly 1–6% above current bank rates tend to hold their value best.
- ✓ Term length — 10-, 20-, and 30-year terms are the most marketable structures.
- ✓ Structure it up front — Every one of these factors is set the day you close with your buyer. Structuring the note properly at the start is what makes premium pricing possible later.
Full Video Transcript
Pricing a Note Starts With Risk
Hey, let’s talk about what goes into pricing a note. I’m Dawn with Moxxie Asset Group.
A lot of what goes into pricing a note is based on how much risk the buyer is taking to take on that note. Things that make the note high risk mean we’re going to pay you less for that note. And things that make the note low risk mean we can pay you more for that note.
The Borrower’s Credit
For example, the borrower’s credit. This is the person who’s going to be paying off the note. So if they do not have good credit — this is higher risk — so it decreases the value of your note.
The Down Payment
The down payment. So we always look for at least 10% down payment. Preferably 15, 20, 25, 30% down payment as much as possible — the more down payment, the lower the risk.
The Interest Rate
Also, interest rate. Is this interest rate about 1 to 6% above current bank rates?
The Terms
Terms are actually very important as well. We want 10, 20, or 30-year terms.
Structure the Note Right Before You Close
The key is to create and structure your note properly before you close with your buyer/borrower so that if and when you do decide to sell the note, you can get top dollar premium pricing for it.
Want to Know What Your Note Is Actually Worth?
Send us your note details and our team will walk you through the numbers — no obligation, no pressure. When all documents are received and title is clear, most closings run 3–5 weeks. Have your promissory note and your mortgage or deed of trust (depending on your state) handy.
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