Clients of mine were contacted by their parents to determine if they would be interested in working out an arrangement for their parents to carry the first mortgage on their home. The parents are retirement age and felt that they would like to minimize their risk in the stock market by investing in more secure products. They found that bonds and certificates of deposit failed to pay a return that would work for them. My Clients agreed to allow their parents to hold the mortgage. The parents became the Mortgagee and their Children became the Mortgagor. At an interest rate of 5% on a $120,000 mortgage, amortized over 30 years, the first payment to the parents would be allocated as $500.00 in interest and $144.19 in principal. A nice win-win arrangement as the parents received an acceptable rate of return and their Children were given a better interest rate than what they were offered on the open market. Please stay tuned for instructions on how to simply and securely make this arrangement.