Quote:
Originally Posted by Phanuthier
Oh interesting thought... though it is a loan, not a gift, so the deal I have with my parents is I'd pay them back on monthly installments (i.e. $500 a month over 6 years) so the dollar doesn't help me in the short term. My parents do own (mortgage paid off).... I don't know if they've ever explored that.
Are interest rates good right now relative to over the last 10 years? I know in Cali, its at a all time low.
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Interest rates in Canada are near all time lows too.
If it is a loan then they could take equity out of their house at 3.29% and have you pay it down. You just send them the cash. But then they're subject to you earning in USD and their debt in CDN.
I'm sure there's many creative ways to look at this. Others should have some good ideas like Kristi.
I'm not sure if a US bank would take your parents on as a client to top up the mortgage to a higher amount then what you qualify at. ie they just come on as a guarantor and co-borrower and you pay the whole mortgage. Go to your bank or find a broker (in the US they're often called correspondants).
My opinion if I was doing this. I'd just get my parents to borrow against their house. It gives them/you the best rate (Canadian) available and a constant payment. Amortize the loan over 5-10 years, 10 year rate is 3.99% right now and have you pay them the mortgage payments.