Seeking Information on Loan Products for Paying Off Parents' Mortgage
I am reaching out to you to seek information about which type of loan product to pursue. My brother and I are looking to help our parents pay off their mortgage so that they can retire without worrying about mortgage payments. Our parents are not asking for any equity in return for the property.
The pay off amount is $85,000 and the property is worth about $600,000. We are both interested in applying for the loan jointly, and our FICO scores are both above 750. While my brother has a primary home in his name, I do not have any property in my name.
Can you please provide us with information on the various loan products that can be utilized for this type of transaction? We are looking for options that can make this process as smooth and hassle-free as possible.
Additionally, we would appreciate any information you can provide regarding the tax implications for the seller of the property.
Thank you for your assistance in helping us explore our options.
Best regards,
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
If this is a sale to you guys, it will probably cost you $100k-$200k in unnecessary taxes eventually.
I'd just make the payments for them and inherit it at the stepped up basis. The PI (not taxes and insurance) on $85k is what, less than $600/mo? That's all that will go away.
I doubt a lender will let you borrow the money while still in your parents names, even if a life estate. @Anthony Ervin
Thanks Steve, I appreciate the feedback.
