How much do I pay my lender in interest

[Rich Hupper]

Hello

I am buying a $300,000.00 home with 55k down. 

I plan on selling in 2 years. My sister has agreed to give me money for some rehab needed in the home. 

She has agreed to let me borrow $50,000.00 for 2 years @15% interest. 

Do we have to create a mortgage where she would be a second position mortgagee?

How much interest would I owe her if I borrowed that money from her for exactly 2 years?

How would I calculate this?

[Darren Eady]

If your sister is the lender, she should be the one asking for a recorded mortgage or lien position if she wants one.  If she is not requiring it, then anything you both put on paper between you two should suffice.  If the lender is not concerned about their position on title, you probably don't need to be either.