Q: How much interest can I charge to fully finance $60k on a house I'm selling. The buyer only has $5k down pmt.
A: Generally speaking interest is a function of market rates so long as it does not violate usury laws. There are caps on the amount of interest a private party can charge. The IRS publishes minimum long-term interest rates (loans at lower rates may be classified differently) which at last check were just under 3%. The default "legal rate" of interest in Maryland is 6% although lenders and borrowers almost always negotiate interest based on market conditions. You are encouraged to seek legal counsel to prepare mortgage paperwork for a seller held loan.
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