Home Buying in 56072>Question Details

Vlb, Home Buyer in 56072

Looking at a contract for deed in new Richland,Mn. but seller is charging 9% interest.Is that too much?

Asked by Vlb, 56072 Sun Jul 10, 2011

What is allowes by law to be the highest interest they can charge or the average for the area?

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5
Gerard is not from MN and his information is wrong.
Web Reference: http://www.whybuyreo.com
0 votes Thank Flag Link Tue Jul 12, 2011
The law has no rule on what you can charge, I have seen Credit Cards with 29.9% so I guess up to that at least is still legal. If you can't get financing any other way then i wouldn't knock it, I have seen hard money with 10 - 12% tagged onto it so 9% is alright!
0 votes Thank Flag Link Tue Jul 12, 2011
Vlb,

You might check out:

https://www.revisor.mn.gov/statutes/?id=47.20

It talks about contract for deed interest rates.

Cameron Piper
Coldwell Banker Burnet
licensed MN Broker
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Tue Jul 12, 2011
Another option would be to call the Minnesota Home Ownership Center : http://www.hocmn.org
Web Reference: http://www.AaronSOLD.com
0 votes Thank Flag Link Sun Jul 10, 2011
State of MN has a line you can call that discloses the maximum interest that can be charged on a contract for deed. It is updated frequently as the amount changes with the market. I believe 9% is quite a bit over what is legally allowed.
Web Reference: http://lennyfrolov.com
0 votes Thank Flag Link Sun Jul 10, 2011
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