QUESTION
Is is legal for a private lender to request a balloon payment in less than 5 years. Interest rate of 8.5%?
Asked on Mar 30th, 2016 on Residential Real Estate - California
More details to this question:
Purchased property in 2007.For 225,000 put 50,000 down. Owner carry. Amortize 8.5% intrest. After 5 years balloon payment for full amount of loan. Owner agreed to refinance rolling loan over. Payments went from 1345.60 to 1500.00 Same intrest rate and wants a balloon for remainder of loan in three years.
1 ANSWER
Estate Litigation Attorney serving Redlands, CA
at
Price Law Firm, APC
Update Your Profile
Yes, it is legal to charge 8.5% interest (10% is the max) and it is legal for a baloon payment in three years.
Answered on Mar 31st, 2016 at 8:41 AM