Posted by Redline on March 15, 1999 at 14:56:52:
12% seems to be all the rage. Check with your state also. In my state (NJ) there are NO usury laws.
RL
Owner finance % - Posted by Bob in MD
Posted by Bob in MD on March 14, 1999 at 09:39:18:
I am getting ready to sell a house that I rehabbed and am prepared to hold a second mortgage for about 20% of the selling price to help a buyer get in with little or no $ down. What is the going rate (%) for a 2nd mtg? Should I be charging any other fees, etc?
Bob in MD
Re: Owner finance % - Posted by SCook85
Posted by SCook85 on March 14, 1999 at 10:39:49:
Bob,
I have been charging 12% on my second mortgages. It is nice when you have the flexibilty to charge what you want. I was prepared to charge someone only 5% one time because that would have kept there payments in line. And I wanted them to make timely payments so that they could refi and I could cash out.
SCook85
Re: Owner finance % - Posted by Carmen
Posted by Carmen on March 14, 1999 at 11:31:22:
Usually, “whatever they accept, as long as it’s not usury” is a good answer. In Florida, usury laws keep it at 18%, but I’ve found that 12% is an accepted norm in this area (everyone seems to like that number; sellers and buyers both seem to quote it).