What Interest Rate for Owner Financing?
We have agreed to owner finance our primary home for a short term balloon loan. 30 year amortized, and then a balloon at about 16 or 18 months, still working on the details. They do qualify for financing now, but for various reasons we decided to do this (I won't bother going into why since that's not the point of my question). My question is what tends to be a standard range to charge on interest above prime or what a bank would give them, for providing the owner financing. Like one (1)% above prime? More? Yes, I know it is whatever we want or agree upon. I'm trying to know what tends to be a standard and is considered fair for both parties. Thanks in advance.