Land Contract Monthly Payment Limit

Question: Is there a limit to the amount of the monthly payment for note on a house purchased on a land contract? If so what is the limit?

Answer: The payment on a Land Contract usually depends on three factors: 1. the balance financed; 2. the interest rate; and 3. the amortization term. With this information a person familiar with real estate lending can calculate the equal monthly payment that will pay off a land contract by a certain date. Land Contract interest rates in Michigan are generally limited to 11%. Parties to a Land Contract may arbitrarily agree to a higher payment or to a balloon payment (making the balance due on a certain date). I hope this answers your question. If you want me to work out a payment for you just provide the 1, 2 & 3 information described above.

Attorney: Mark Miller

Share On:

Ask An Attorney

Corporate Attorney

Do you have legal questions?

Use our form to send your question to us and our lawyers will post the answers on our website.

Verify Miller Johnson Schroeder, PLC