what is the maximum interest rate a CA bank can charge on a mortgage loan?

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a lender has offered us a 25% interest loan…isn’t that ususary in the state of CA???

3 Comments
  1. Reply
    Ed Fox
    January 28, 2011 at 6:12 am

    A loan provider can charge any amount of interest he wishes provided it is clearly stated in the agreement

  2. Reply
    bdancer222
    January 28, 2011 at 7:04 am

    Wow!! You must have some really poor credit to get that kind of rate on a mortgage!!! I would definitely call that rate usury. However, very few states have laws limited interest rates.

    I strongly suggest you pass on that lender and put off buying a home for a few years until your credit rating improves and you can save up for a larger downpayment.

  3. Reply
    bloomorningglory
    January 28, 2011 at 7:40 am

    Not sure why there would be a max. You have the choice to accept it or not. Either the bank is attempting to take you for a ride or you are a really bad credit risk.

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