$120,000 in my savings, parents what me to pay off their house.
I’m 25 years old and live with my parents and make $52,000 a year after taxes. I spend about 9k a year on food gas clothes etc. My parents have about 110ish left to pay of on their and are expected to pay off in 11 years. I believe the interest rate is somewhere between 3-4%. Would I save them a significant amount of money paying off their house and having them pay me back in 5 years or would it be better for me to invest my money and open a high yield savings account.
Let’s get straight to the point: Your plan to pay off your parents’ mortgage and have them pay you back in 5 years is fraught with financial and emotional landmines.
If the logic here is that they can pay you back in such a short timeframe, it begs the question: Why aren’t they just as aggressive in paying down the mortgage themselves? This isn’t just about numbers; it’s about the complexities of intertwining financial dependency with family dynamics.