Posted on: 12th Nov, 2009 08:00 pm
I am looking into buying a home by owner financing but the interest rate he has given me on a 98,000 loan is 8%. Is that normal and can he do that?
Hi tymatt,
A similar issue has been discussed on the following page:
http://www.mortgagefit.com/ownerfinancing/interestrate-scam.html#134085 .
A similar issue has been discussed on the following page:
http://www.mortgagefit.com/ownerfinancing/interestrate-scam.html#134085 .
No 8% is not too high. In fact, I would charge 10%. The reason why a borrower would go for owner financing is probably because he/she cannot get financing from a bank. So, if a bank will not lend at 6% to you then why should the owner?
well said, eric. i agree completely with your sentiment, though an astute (?) unqualified borrower (sorry for the contradiction) would take the time to bargain. and, of course, to shop around a bit to see what other alternatives exist.
