Legal Question in Real Estate Law in Oregon

Re: Real Estate Mortgage

The lowest legal rate varies by:

(1) term of the loan;

(2) how often payments are made; and

(3) what month the loan is made.

The official rates are set each month by the Federal Government. You can check these rates ("applicable federal rate") at http://pmstax.com/afr/

"Short Term" loans are under 3 years

"Mid-Term" lonas are 3-9 years

"Long Term" loans are over 9 years

These rates apply to any loan, not just those between family members. Along with determining an interest rate, you should also be sure to fully document any loans made to family members.