In movies and television shows depicting "by-gone" eras, 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 when needed.
Today, there are opportunities to return to the values shared in earlier times. Younger
family members, just starting out, can be provided assistance with downpayments on a first
home. Others, already established in home, might benefit by receiving funds to be used as
purchase money, secured by a first mortgage, resulting in a lower interest rate.
By making funds available to family members for downpayments and mortgages, parents,
grandparents and other relatives can earn favorable interest rates on their savings.
Secured by mortgages or other collateral, the use of "family money" could work
to the benefit of both borrower and benefactor.
The relative making the loan may receive more interest than what their current
investment provides, and the one borrowing might benefit by a slightly lower rate than
would be available from a conventional lender. Either way, the family benefits. Younger
members of the family can begin building security through equity in a home, and those
moving up may improve their financial position through interest savings.
Home ownership has historically provided a long term increase in financial security.
Properly secured loans from one family member to another for home buying purposes 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.
If you have need of professional real estate advice on any subject, please call Jan at 260-489-7024 or outside of Fort Wayne call 1-800-395-9527.
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