Introduction: Why Your Texas Note Might Be Worth More (or Less) Than You Think
If you’re thinking about selling your Texas seller financed mortgage, you might be wondering: “What Affects the Value of a Texas Mortgage Note”
The answer depends on more than just the remaining balance. In fact, Texas note buyers weigh several factors before making an offer — some that are obvious, and others that most sellers never consider.
In this guide, we’ll break down exactly what affects your note’s value in the Texas market and how you can position yourself to get the best possible price. Read on to discover what affects the value of a Texas Mortgage note.
1. Property Type and Location
In Texas, real estate is as diverse as its landscapes — and that diversity plays a huge role in note valuation.
- Metro Areas: Properties in Dallas–Fort Worth, Austin, San Antonio, and Houston tend to command higher offers because of population growth, job creation, and strong resale markets.
- Suburban Growth Corridors: Places like Katy, Frisco, and New Braunfels are magnets for families, making notes tied to these areas especially attractive.
- Rural Properties: West Texas ranch land or small-town homes can still hold value, but buyer demand may be more limited — which can lower note pricing.
- Commercial Notes: These are generally desired regardless of Texas location.
Pro Tip: If your property is in an up-and-coming Texas neighborhood, mention any new developments, employers, or infrastructure projects to your buyer. These factors can boost the perceived value of a Texas Seller Financed Mortgage.
2. Interest Rate on the Note
Higher interest rates mean more income for the investor — which usually translates to a higher offer for you.
- Example: A $150,000 note at 8% interest will almost always sell for more than the same note at 5%.
- Texas investors especially like interest rates above current bank rates, since it gives them a better return than traditional lending.
3. Payment History & Borrower Reliability
Texas note buyers love “seasoned” notes — meaning notes with a track record of on-time payments.
- Perfect payment history = premium pricing
- If your borrower has missed payments, you can expect a lower offer — but not necessarily a deal-breaker. Texas’ quick foreclosure laws can still make riskier notes viable for buyers.
- Your note may be a candidate for a partial purchase
4. Remaining Balance & Term
The size of your note’s unpaid balance matters — but so does how long the borrower has to pay it off.
- Shorter remaining terms can mean less total income for the investor, but also less risk. These types of Texas Mortgage Notes are generally desired by Texas Note buyers.
- Longer terms can be appealing if the interest rate is high and payments are consistent.
5. Lien Position
In Texas, first-position liens are most valuable because they get paid first if the property is foreclosed.
- First-position deed of trust = highest offers
- Second-position or junior liens = lower offers due to higher risk
6. Texas-Specific Legal Advantages
Texas’ non-judicial foreclosure process makes it one of the fastest states for lenders to recover collateral — often in as little as 41 days after default.
Why it matters for you:
- Buyers see less risk in Texas notes than in states with long foreclosure timelines.
- Less risk means they can often pay more.
7. Special Property Features
If your property is in a unique niche — beachfront in Galveston, vacation rental in Fredericksburg, or oil field housing in Midland — it can either add value or create volatility.
Buyers will want to know:
- Seasonal rental income potential
- Local economic drivers (tourism, oil, tech, manufacturing, etc.)
- Market stability for that property type
8. How You Can Increase Your Note’s Value Before Selling
- Gather Complete Documentation
Have your original note, deed of trust, payment history, and insurance details ready. - Highlight Strong Borrower Performance
Present proof of consistent payments — Texas buyers love a reliable payer. - Sell at the Right Time
If interest rates rise, your existing higher-rate note becomes more valuable. - Consider Partial Sales
Sometimes selling part of your note rather than all of it can lead to a better overall payout.
The Most Important Thing for Mortgage Note Holders
when they are looking to sell a mortgage note is getting a fair and competitive offer from a trustworthy, experienced buyer who can close quickly and handle any complexities with professionalism and discretion.
Other key factors that often matter include:
- Understanding the true value of their note (based on interest rate, payment history, property type, etc.)
- Working with a buyer who communicates clearly and transparently
- Avoiding delays and hidden fees
- Preserving their privacy and financial goals
Why Work with a Texas-Savvy Note Buyer
An out-of-state buyer may undervalue your note if they don’t understand Texas markets.
At American Funding Group, we’ve been buying notes nationwide for over 30 years — with deep experience in Texas’ unique real estate and legal landscape.
Whether your note is tied to a suburban home in Cedar Park, a duplex in Arlington, or acreage outside Lubbock, we can often make stronger offers because we know exactly how to price Texas real estate paper. Be sure to check out Google Reviews and testimonials.
“We Promise to Treat You With Respect… The Way We Want to be Treated”
And that’s exactly what we’ve been doing since 1989. Over time, American Funding Group has become one of the most respected note buyers in the country… purchasing thousands of real estate notes, overcoming problems and buying notes which other note buyers couldn’t buy. As you are Finding the right Mortgage Note Buyer, make sure you deal with a mortgage buyer with the best creative and unique approaches geared to solve your problem.
About American Funding Group
I’m Kevin Clancy, Company President. I am a graduate of the US Coast Guard Academy. After years of military service and high-level corporate financial experience, I’ve dedicated myself to helping people prosper in real estate as one of America’s most trusted mortgage note buyers.
Our company’s core values are:
1) We do what we say, including overcoming obstacles other note buyers can’t overcome.
2) We communicate with you every step of the way so that we can close your sale ASAP.
3) And most importantly… “We treat You with respect because that’s the way we want to be treated.” That attitude has helped us become one of the most trusted note buying companies.
Final Thoughts
Your Texas mortgage note’s value is determined by a mix of property, borrower, and market factors — but also by the buyer’s understanding of the Texas market. Read more on our Texas Note buyers page.
If you want to know exactly what your note is worth today, contact American Funding Group for a free, no-obligation quote. You may be pleasantly surprised by how much you can get — and how quickly you can turn future payments into cash in hand. Start by Filling out the below form or call us at (772) 232-2383