Land contract calculator
Estimate a Michigan land contract payment.
Land contracts (also called installment land contracts) are a common Michigan seller-financing tool where the seller retains title until the contract is paid off. The buyer makes monthly principal and interest payments to the seller. Allegiance handles land contract closings and records the memorandum of land contract with the county.
Opening a land contract closing?
Email the purchase agreement to orders@miallegiancetitle.com and we will open the file and record the memorandum.
Inputs
Enter the contract terms.
Land contracts typically have 5-20% down.
Land contracts often run 1-3 points higher than bank rates.
The schedule your monthly payment is calculated against.
When the remaining balance is due in full, forcing a refinance.
Estimate
Monthly payment
On a $190,000 financed amount
$1,329
Total interest over term
$288,263
Balloon balance at year 5
$179,773
Total paid through year 5
$89,710
Amortization preview
| Pmt | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,329 | $141 | $1,188 | $189,859 |
| 2 | $1,329 | $142 | $1,187 | $189,717 |
| 3 | $1,329 | $143 | $1,186 | $189,574 |
| ... | ||||
| 60 | $1,329 | $204 | $1,125 | $179,773 |
| ... | ||||
| 360 | $1,329 | $1,320 | $8 | $0 |
Estimate only
This is an estimate. Actual land contract terms are negotiated between buyer and seller. The recorded memorandum of land contract is the authoritative document.
Calculation uses standard P&I amortization. Taxes, insurance, and any escrows held by the seller are not included. The title commitment opened by Allegiance is the authoritative document for closing charges.
How land contracts work in Michigan.
Seller financing, done right.
Title and equitable interest
The seller keeps legal title until the contract is paid in full. The buyer has equitable interest, can use and improve the property, and gains the equity built through payments. Allegiance records the memorandum of land contract to protect the buyer's position on the public record.
Balloon payments
Most Michigan land contracts include a balloon, typically at year 3 or 5, forcing the buyer to refinance with a traditional lender. The monthly payment is calculated as if the loan amortizes over the full term, but the entire remaining balance becomes due at the balloon date. Plan for it early.
Recording and protection
Allegiance records a memorandum of land contract with the county to protect the buyer's equitable interest. This is covered by the Michigan Land Contract Mortgage Act (MCL 565.354 and following). Recording the memorandum is a critical step that should not be skipped.
Closing a land contract?
Open an order. We'll record the memorandum.
Allegiance handles land contract closings from opening to county recording. Send us the purchase agreement and we will open the file, prepare the closing docs, and record the memorandum of land contract. Most orders are acknowledged within one business hour.