So my parents want me to take over their mortgage (~300k), meaning refinancing/taking out my own loan, while they still pay for it. They believe this will be beneficial for all of us, as I can probably get a lower interest rate due to better credit, and I can also get a tax break since I earn more than them.
A little background- my parents are getting older and are struggling with the payments. They bought the house for $560k, and it's now worth $1.1mil. If I get a lower interest rate and an extended loan term, their monthly payments will decrease, so they could actually keep the house. I also make about 130k/yr before taxes, so this will be a nice tax break, according to them. I genuinely know they're not trying to screw me over.
Any advice on how to proceed and things to consider? Thanks in advance.
**Update** After consulting with my parents, they have decided to sell the home, move a couple hours away and downsize. Even with a lower interest rate/refinancing, they will eventually be unable to afford the home in the future, and we'll be back in the same predicament. I feel extremely guilty and selfish by not agreeing to simply live with them and assist them with paying off the remaining 300k, but I have other goals in mind (not in California), and I am not ready for such a responsibility. I just hope they don't think any less of me after this. Thank you to everyone for your advice.
Submitted May 24, 2019 at 08:21PM by l0llapal0oza00 http://bit.ly/2YJNis3
