Q: I am going to buy a house in Nebraska. Owner will carry me. Do I have ti pay interest if we agree to 0%
If we agree ti 250 k over 14 yrs. 0% interest. Now some lawyer is saying we have to be charged interest? Is this correct
A: It is almost unheard of for a person to not pay interest on a mortgage. While I'm not aware of any law that requires a person to charge interest, you may run into unintended consequences if you don't. For example, tax repercussions, gift tax repercussions, estate issues, etc. depending on the specifics. Thus, the attorney's answer that you have to pay interest may be to avoid some of these potential unintended consequences. You would need to speak with an attorney about the specifics of your case for advice specific to your situation.
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