In owner financing, the seller takes on the role of the lender. As opposed to offering money to the purchaser and just handing over money to the buyer in the form of a loan as banks and mortgage lenders do, the merchant stretches sufficient credit to the purchaser at the cost of the home, with the exception of a down payment. The seller then permits the purchaser to make installments throughout the period agreed upon. Typically, a promissory note is signed by the purchaser of the house to the seller. The aim of the promissory note is to record the financing cost, the interest rate, the reimbursement timetable, and default outcomes. The owner-financing arrangements are usually short-term ones. Most sellers do not want the hassle of continuing to collect the payments for several years.