I have a question regarding private mortgage loans?

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This might be a really dumb question but it’s legit. This is about investing by doing private mortgage loans. I was wondering when you are doing a private mortgage loan and your charging… lets say 10% interest on a $ 50,000 loan… does that mean your charging 10% interest a month or does that mean a year? If you can give me any kind of feedback about this type of investing.. It would help me a lot! Thanks!

1 Comment
  1. Reply
    Kip
    February 13, 2011 at 9:01 am

    That normally means you are charging 10% per year. Mortgage rates are normally quoted as annual rates. It’s all good until a bankruptcy judge writes down the debtor’s debt and you eat the difference.

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