October 7, 2009|Frank Goodale|Corporate: From the Executive Suite, Mortgages/Economy/Market
When certain conditions are met, family money may be the best source of mortgage money for a child’s or grandchild’s home for two primary reasons. The first is that the parent can enjoy interest rates significantly above what is commonly available to them in today’s market, while the child can enjoy interest rates substantially below what is commonly available for a mortgage. The second reason is that this can be a simple, flexible, tax advantaged way to transfer inheritance to your children or grand children.
That being said, this is definitely not for everyone and requires solid financial guidance from a qualified estate or financial planner.
Depending on the length of the mortgage, the interest rate could be as low as 2.63% and could be increased from there depending on the needs of the parent and child. Tax advantaged inheritance goals can also be accomplished by forgiving portions of this debt each year, being careful not to... Read More
Tagsestate planning, financing, interest rates, mortgage