In old movies and television shows, families are portrayed as having strong ties between parents, children, aunts, uncles and grandparents. Relatives seem to join together in close-knit unity, sharing their prosperity and giving each other emotional and financial support.
Something you may not have thought about, but is certainly worth some thought is the possibilty of family assistance when it comes to financing a new home. Today, there are still opportunities to return to the values shared in earlier times. Younger family members can be assisted with a down-payment on a first home. Others might benefit from "family financing" on their next home.
By making funds available to family members for down-payments and mortgages, parents, grandparents, and other relatives can earn more favorable interest rates than their savings would normally earn. Such loans can be secured with a first mortgage providing financial protection for the lending family member.
If CDs are paying 1% and mortgage companies are charging home-buyers 5%, there is room for both the family borrower and family lender to benefit. By offering a 3.5% mortgage rate, the lending family member helps the borrower, while earning more than double the return available on savings.
Home ownership has historically provided a long-term increase in financial security. Secured loans from one family member to another can provide financial growth, strength and security, not to mention emotional satisfaction. Whether you are planning to buy, or have money to invest, talk to a family member first. Put your family ties to work for the good of the family.
Maybe your family can help you be able to say GOOD NIGHT - John Boy. . . in your own new home!