OAR 274-020-0382: Interest Rate Payable When Property Transferred Back to Original Borrower

The interest rate on a loan secured by property transferred back to the original borrower depends upon whether the original borrower has an outstanding loan, with the interest rate under ORS 407.325 (Rate of Interest Payable by Applicant) at the time of the transfer, and whether the home will be used as the original borrower’s principal residence: (1) If the original borrower does not have an outstanding loan with the interest rate under ORS 407.325 at the time of the transfer, and the home will be used as the original borrower’s principal residence, the interest rate will be the rate charged on the loan when made and as periodically adjusted under the “variable” provision of ORS 407.325. (2) If the original borrower has an outstanding loan with the interest rate under ORS 407.325 at the time of the transfer, or said borrower will not use the home as the borrower’s principal residence, the interest rate will be the rate under ORS 407.335 (Rate of Interest Payable by Transferee).