Timeline for Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
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| Aug 17, 2017 at 14:56 | comment | added | iheanyi | Yes, but what is bank rate? What if the banks think his credit is too bad to offer him a loan? When you say bank rate, do you mean his parents should loan him money at prime rate? If so, why? Banks make lots of loans above prime, why should his parents not do the same? Of course, given that their financial contribution gives them fixed equity in the home, this isn't a loan in the traditional sense, but an investment. But we can argue about that after we resolve the rate issue. | |
| Aug 17, 2017 at 14:49 | comment | added | Mike wright | Where does it say that? If parents want to help him they would lend at bank rate, so still earn more than they would get if left in savings. | |
| Aug 16, 2017 at 12:17 | comment | added | iheanyi | How does that make sense? If he's getting a better rate than available from banks how is he being exploited? So family are required to loan you money at 0%? | |
| Aug 16, 2017 at 8:54 | comment | added | Mike wright | That makes no difference. In fact if his parents are exploiting his lack of credit worthiness, that's worse in some way. They are not helping him with this deal, they are making from it. Also, if you have a 25% deposit to put down on a house you can get a mortgage of some description which would beat his current deal. | |
| Aug 15, 2017 at 7:46 | comment | added | iheanyi | You're making a fatal assumption - that he could qualify for loans at all, market rate or otherwise. | |
| Aug 9, 2017 at 10:47 | review | First posts | |||
| Aug 9, 2017 at 11:07 | |||||
| Aug 9, 2017 at 10:42 | history | answered | Mike wright | CC BY-SA 3.0 |