Comments on: What is an acceptable interest rate for a loan between family members? http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php Home Equity Loan Information Thu, 29 Dec 2011 01:14:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Carlos R http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1623 Carlos R Thu, 29 Jul 2010 23:17:04 +0000 #comment-1623 5%, assuming you will be diligent, and faithfully make the payments. 5%, assuming you will be diligent, and faithfully make the payments.

]]> By: Luke 6:37 http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1624 Luke 6:37 Thu, 29 Jul 2010 23:17:04 +0000 #comment-1624 5% 5%

]]> By: Melissa L http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1625 Melissa L Thu, 29 Jul 2010 23:17:04 +0000 #comment-1625 Anything between the best deposit rate your dad could earn putting the money in a CD or money market account and the best rate you would have to accept to take out a loan for the same amount. Right now, you might be able to borrow at 8% and your dad may be able to get 5% return on a CD. Therefore anything between 5 and 8% benefits you both. Obviously the midpoint (6.5% in this example) would split the benefit equally. Of course with family you may decide the need of one is greater than the profit of another and it is not unusal to have interest free loans or very low rates between family members. Anything between the best deposit rate your dad could earn putting the money in a CD or money market account and the best rate you would have to accept to take out a loan for the same amount. Right now, you might be able to borrow at 8% and your dad may be able to get 5% return on a CD. Therefore anything between 5 and 8% benefits you both. Obviously the midpoint (6.5% in this example) would split the benefit equally.

Of course with family you may decide the need of one is greater than the profit of another and it is not unusal to have interest free loans or very low rates between family members.

]]> By: Spock (rhp) http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1626 Spock (rhp) Thu, 29 Jul 2010 23:17:04 +0000 #comment-1626 at least 3% over the rate of inflation, compounded annually and adjusted for the rate of inflation annually. at least 3% over the rate of inflation, compounded annually and adjusted for the rate of inflation annually.

]]> By: pants http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1627 pants Thu, 29 Jul 2010 23:17:04 +0000 #comment-1627 5 percent sounds like a fun game, or the answer above me sounds like a yummy time. 5 percent sounds like a fun game, or the answer above me sounds like a yummy time.

]]> By: Landlord http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1628 Landlord Thu, 29 Jul 2010 23:17:04 +0000 #comment-1628 If you pay him 5% and compound it monthly (too hard to do daily) you will give him about what he would get if it were in the bank. You both win, as he helps you without hurting himself and you can get started with homeownership. If you pay him 5% and compound it monthly (too hard to do daily) you will give him about what he would get if it were in the bank. You both win, as he helps you without hurting himself and you can get started with homeownership.

]]> By: skyler5599 http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1629 skyler5599 Thu, 29 Jul 2010 23:17:04 +0000 #comment-1629 In the long run, it may just be better to avoid any financial involvement within the family. In my experience, at least! In the long run, it may just be better to avoid any financial involvement within the family. In my experience, at least!

]]> By: Ivanhoe Fats http://www.easyhomeequityloan.net/what-is-an-acceptable-interest-rate-for-a-loan-between-family-members.php#comment-1622 Ivanhoe Fats Thu, 29 Jul 2010 23:17:03 +0000 #comment-1622 an alternative is to treat it as an investment and your dad gets that proportion of the selling price of the house when you sell eg he pays 20,000 towards the purchase of 200,000 so when you sell at, say, 300,000 he get 30,000 back that way he gets a share of the appreciation of the property and you don't have to pay the interest an alternative is to treat it as an investment and your dad gets that proportion of the selling price of the house when you sell

eg he pays 20,000 towards the purchase of 200,000 so when you sell at, say, 300,000 he get 30,000 back

that way he gets a share of the appreciation of the property and you don’t have to pay the interest

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