10-08-2011, 02:42 PM
omg but it IS next door and you will have a family compound..
if the house is sound and if u decide to buy it, get the lowest most ridiculous rate quote you can and keep getting them. go to a broker, online, and every bank in town and then take the best printed out quotes to your most respected banks in town and tell them to match it or you will go elsewhere (which you will) you will find their bottom line get lower and lower with your good credit and low debt load. i agree it is good to be able to work with a person for things like this. they will come down. we went to a bank that offered us 4% and then kept getting other quotes until days before closing until we had them (the bank near my fiancees work) down to 3.25%.
you HAVE to make a formal contract with your son though. re-selling may be a hard thing to do and renting is good if it covers the mtg and taxes plus a few xtra dollars, but you don't need that hassle. see if you can indeed loan him the downpayment (a LOAN in print with payback expectations is different than gift or handshake) and get him to take on the house with his own mtg - sans gf if they aren't married.
you will actually help preserve the relationship with your son if everything is clearly in black and white about your financial entanglements with him. nobody ends up thinking they are entitled to things they didnt get or acts like they didnt know what their responsibilities are etc. your son should respect u for presenting a good clear contract.
i agree that you need to have your retirement in place to take on more debt though- if you dont plan on having your son take on the debt load on paper. he can get away and leave u with it, even in a nice way, but u'd still be stuck.
I hope your vision for grandchildren just next door works out! good luck!
if the house is sound and if u decide to buy it, get the lowest most ridiculous rate quote you can and keep getting them. go to a broker, online, and every bank in town and then take the best printed out quotes to your most respected banks in town and tell them to match it or you will go elsewhere (which you will) you will find their bottom line get lower and lower with your good credit and low debt load. i agree it is good to be able to work with a person for things like this. they will come down. we went to a bank that offered us 4% and then kept getting other quotes until days before closing until we had them (the bank near my fiancees work) down to 3.25%.
you HAVE to make a formal contract with your son though. re-selling may be a hard thing to do and renting is good if it covers the mtg and taxes plus a few xtra dollars, but you don't need that hassle. see if you can indeed loan him the downpayment (a LOAN in print with payback expectations is different than gift or handshake) and get him to take on the house with his own mtg - sans gf if they aren't married.
you will actually help preserve the relationship with your son if everything is clearly in black and white about your financial entanglements with him. nobody ends up thinking they are entitled to things they didnt get or acts like they didnt know what their responsibilities are etc. your son should respect u for presenting a good clear contract.
i agree that you need to have your retirement in place to take on more debt though- if you dont plan on having your son take on the debt load on paper. he can get away and leave u with it, even in a nice way, but u'd still be stuck.
I hope your vision for grandchildren just next door works out! good luck!