Financing in Rio Rancho>Question Details

Pamela Byrne, Home Buyer in 85382

On a owner financing is there a legal interest rate they can charge?

Asked by Pamela Byrne, 85382 Sun Sep 5, 2010

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All owner financing is by mutual agreement. If you don't like the interest rate ....WALK AWAY! Don't pay any exorbitant rates, in the long run they are not worth it. If the seller truely wants to sell they should be reasonable with their negotiations.
0 votes Thank Flag Link Tue Sep 7, 2010

I will have to agree with Maureen. Check out the usuary laws. There are maximum interest rates. Typically, the rates for an REC is 3-5 percent higher than the market rate is. So, you're looking at about 8% for owner financing. If you need help making an offer for owner financing, I will be more than happy to write it up for you. You also need to make sure that before making an offer on owner financing property that we do a market analysis to make sure you are not paying over and above market value in that area. My email is and my cell is (505) 400-3307.
0 votes Thank Flag Link Mon Sep 6, 2010
Research the usury laws for your state. There are laws governing interest rates. I don't know how accurate this site is, but it might get you started:
0 votes Thank Flag Link Sun Sep 5, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
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