I just put an offer in for 3 seperate 4 plexes which was accepted by the seller. The offer was for $400,000 which would be paid with a 85% conventional loan at 8.3% and the seller agreed to carry back the remaining 15% at 6.5%.
I was told by my 1st mortgage lender that the seller had to charge a higher int rate than what was being charged for the 1st. Now we are having to pay the sellers 2nd at 8.5%. Does anyone know wether or not this is correct, or is the 1st lender incorrect.
It is standard for a 2d mortgage to have an interest rate higher than the first, but I’m not aware of any requirement. I would ask the lender why. When you find out why, let us all know. Thanks