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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?

jenkin7 · Posted: Thu Nov 12, 2009 10:51 pm Post subject:

Hi tymatt,

A similar issue has been discussed on the following page:
http://www.mortgagefit.com/ownerfinancing/interestrate-scam.html#13408 5 .

eric1 · Posted: Fri Nov 13, 2009 9:30 am Post subject:

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?

gmakerley · Posted: Fri Nov 13, 2009 11:56 am Post subject:

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.

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is an 8% interest rate to high for owner financeing