Posted on: 06th Mar, 2009 07:38 am
if I hold a mortgage is the max interest rate I can charge in the state of NJ
will you plz elaborate your question little bit.As it is not very clear from your post what exactly you want to convey>>>
it's pretty evident to me what you're seeking to find out. to my knowledge, usury laws do not apply to mortgage loans. in the current environment, though, i would think that you'd have to settle for a moderate interest rate (such as 6, 7, 8 or so). you'd be making money and the borrower wouldn't be getting hammered. i assume that your purpose is primarily for the purpose of financing a challenged borrower.
You are in a unique situation. My guess if the purchaser of your home is unable to get a mortgage on his/her own. Therefore, there may be no other way for them to purchase a home without owner financing. I really see no problem with you charging a high rate in exchange for owner financing. In my opinion, that is the only way I would consider doing it. Hard money lenders are well over 10% in some instances.
