At what interest rate would you consider to high to make sense for a subject too deal?

1. Property Details - Property: 123 Main St, Exampletown, USA - Purchase Price: $200,000 2. Down Payment - Amount: $20,000 (10% of the purchase price) - The buyer provides this amount upfront as a down payment, reducing the amount to be financed. 3. Amount to be Financed - Amount: $180,000 (Purchase Price - Down Payment) - This is the amount the seller will finance for the buyer. 4. Interest Rate - Rate: 5% annual interest - This is the interest rate agreed upon between the buyer and the seller. The rate should be clearly stated in the agreement. 5. Term of the Loan - Loan Term: 15 years (180 months) - The length of time over which the buyer will repay the loan. 6. Monthly Payment - Payment Calculation: Using an amortization schedule, the monthly payment would be approximately $1,419.47. - This payment covers both principal and interest. You can use an online amortization calculator or a formula to calculate the exact monthly payment. 7. Balloon Payment - Balloon Payment: $150,000 due in 5 years (at the end of Year 5) - In this case, the loan is structured with a balloon payment, meaning the buyer will make regular monthly payments but must pay off the remaining balance in full after 5 years. - The balloon payment is calculated as the remaining balance of the loan after 5 years of payments. 8. Repayment Schedule - The buyer will make monthly payments of $1,419.47 for 5 years, and then a lump sum balloon payment of $150,000 at the end of Year 5. - If the buyer is unable to pay the balloon payment at the end of 5 years, the seller may offer a refinancing option or a renegotiation of the loan terms. 9. Late Fees and Default Terms - Late Fee: $100 if payment is more than 15 days late. - Default: If the buyer defaults (fails to make payments), the seller may have the right to foreclose on the property, taking ownership. 10. Security/Collateral - Collateral: The property itself (123 Main St, Exampletown, USA) serves as collateral for the loan. - In case of default, the seller can initiate foreclosure proceedings to recover the loan balance.

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