My husband and I bought a second home two years ago, for $160,000, with a 30-year mortgage at 2.5%. We bought it with the sole purpose of renting it out to our son and his new wife.
They were recent college graduates, and just starting their careers. They’ve made this house their home. And it’s been a wonderful arrangement where they cover all the costs, and have maintained and even improved the property.
But now, since they’re earning good money, they would like a home of their own. All four of us want to turn this rental agreement into a scenario where they own a house.
Because of the 2.5% rate, none of us are interested in selling the house and getting our rates jacked up to 7%.
We are considering keeping the mortgage under our name, and serve as the bank, and have our son pay all the expenses, and for the house to be his. This was the plan we had in our mind, and would be formalized in a written agreement.
“‘We are considering instead to keep the mortgage under our name, and serve as the bank, and have our son pay all the expenses and the house be his.’”
When he decides to eventually…
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