Legal Question in Real Estate Law in Pennsylvania

Mortgage too much/ can I back out?

I am buying a house. When I originally put the offer in there was a section in the offer which mentioned financing. I was trying to find a mortgage that was no higher than 6.25% interest. Well, apparently I did not qualify for the whole amount of the house at this percentage. Part of it was at 6.25%, and then the mortgage lender put did a second loan for the remainder of the selling price at a higher interest rate ...11%. Can I back out of the deal now that I see how much this is going to be?


Asked on 10/30/04, 10:17 pm

2 Answers from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Mortgage too much/ can I back out?

Yes you can. The mortgage contingency applies to the entire amount to be financed. If the entire amount is not less than the maximum rate, you can exercise your option.

You must follow the terms of the agreement to do this successfully.

If I can be of any help, do not hesitate to call or E-mail for a free initial consult.

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Answered on 11/01/04, 12:01 pm
Mark Johns Mark Johns, Esquire

Re: Mortgage too much/ can I back out?

It would depend on the language of the sales agreement. Does it just require you get financing or does it specify limits on interests rates. I offer free consultations.

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Answered on 10/31/04, 10:14 am


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