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Why? They owe 57k on the loan. Why even bother to refi at this time? You’re gonna pay 4/5k in costs.
There is a motive he wants to do that. There is very little to gain by taking over a mortgage on a house you do not own. I would never take over my moms mortgage. I would help her with the payment if she needed it.
Something doesn’t make sense.
If I personally carry the note to you arent paying 4-5k in closing cost. I pay off your loan and you give me money every month. Plus even in a traditional refi you probably aren’t paying 4-5k closing costs on a 57k mortgage
Why? They owe 57k on the loan. Why even bother to refi at this time? You’re gonna pay 4/5k in costs.
There is a motive he wants to do that. There is very little to gain by taking over a mortgage on a house you do not own. I would never take over my moms mortgage. I would help her with the payment if she needed it.
Something doesn’t make sense.
While I agree this is odd, there are not $4/5K in fees unless their son is going to charge them broker fees.
People on this forum will always give the most conservative answer possible to nearly any question posed.
If your eventual plan is for your son to inherit the home, then I don't see the harm in transferring the deed to his name now. My father-in-law actually did this for my wife and I. If this transaction is purely so your son can make a 3.65% return on his money, there are probably better ways to go about that.
To those saying things along the lines of "don't do business with family", while that may be good advice in a lot of instances, it is not universal. It really depends on the relationship of the two parties involved and how responsible they each are. I've done business with family on multiple occasions and it has always led to good outcomes. As always, YMMV.
If your eventual plan is for your son to inherit the home, then I don't see the harm in transferring the deed to his name now.
That is a terrible suggestion.
So many reasons not to:
Son has a legal judgement against him and home is sold to satisfy it. Everyone must vacate, loss of parents domicile.
Son gets married, gets divorced, spouse gets half or all of house in settlement. Parents and son must vacate, loss of domicile.
Son gets married, spouse tells parents they must leave.
Son is seriously injured, lifetime care needed, house must be sold to pay for it. Parents must vacate.
Some states have ways to title deeds to name a life estate for current owners with the son the eventual owner. It's what people do who don't want an expensive trust set up. Not all states have this available but my grandparents did it with their home. This was not way to fool Medicaid, they never used that, just a way to make it official on the deed in the case the will got lost.
If your eventual plan is for your son to inherit the home, then I don't see the harm in transferring the deed to his name now.
That is a terrible suggestion.
So many reasons not to:
Son has a legal judgement against him and home is sold to satisfy it. Everyone must vacate, loss of parents domicile.
Son gets married, gets divorced, spouse gets half or all of house in settlement. Parents and son must vacate, loss of domicile.
Son gets married, spouse tells parents they must leave.
Son is seriously injured, lifetime care needed, house must be sold to pay for it. Parents must vacate.
Some states have ways to title deeds to name a life estate for current owners with the son the eventual owner. It's what people do who don't want an expensive trust set up. Not all states have this available but my grandparents did it with their home. This was not way to fool Medicaid, they never used that, just a way to make it official on the deed in the case the will got lost.
Add my vote to the NO pile. Mixing money and family is a bad idea. Plus, how convoluted is this scenario: son pays you rent, you turn around and pay him mortgage? The legal paper trail is going to be a mess when/if the house gets sold. Is he going to report the 4k as taxable income? I'll bet not.
Your son sounds ... sketchy. Living in your house AND trying to make a profit off you? If he has 60k lying around, why doesn't he invest it and make more money?
People on this forum will always give the most conservative answer possible to nearly any question posed.
If your eventual plan is for your son to inherit the home, then I don't see the harm in transferring the deed to his name now. My father-in-law actually did this for my wife and I. If this transaction is purely so your son can make a 3.65% return on his money, there are probably better ways to go about that.
To those saying things along the lines of "don't do business with family", while that may be good advice in a lot of instances, it is not universal. It really depends on the relationship of the two parties involved and how responsible they each are. I've done business with family on multiple occasions and it has always led to good outcomes. As always, YMMV.
You are 1000% correct! If the plan is for the son to inherit the house then go for it. However, why would you pay your son. Just send the monthly payment to the new lender for the next 4 yrs. Therefore, you know the mortgage is getting paid.
The whole so he gets the mortgage interest is not a good reason to do this.
Absolutely, not. Whose would actually own the house?
What if he meets a gold digger and she convinces him to kick you out of the house? I have read about that type of thing happening. Heck, it even happened in my extended family. Grandma inherited the family homestead when Grandpa died and ended up putting it in her son's name (at his insistence). And, once grandma got too old to be an unpaid fulltime babysitter for her son & DIL's four children, they literally kicked her out with a weeks notice. Kicked her out of her own house where she had lived for almost 60 years. They didn't even let her take her own furniture. Luckily, another relative took her in.
I don't know how some people live with themselves.
You are 1000% correct! If the plan is for the son to inherit the house then go for it. However, why would you pay your son. Just send the monthly payment to the new lender for the next 4 yrs. Therefore, you know the mortgage is getting paid.
The whole so he gets the mortgage interest is not a good reason to do this.
Absolutely. OP, notice the risks you're unwittingly considering opening yourselves up to, that others are pointing out. IMO, you'd be better off turning your son down, politely. There are too many patches of quicksand around this scenario, IMO.
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Whose would actually own the house?
