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June 01, 2007


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I have some experience in this area.

My wife and I borrowed $28,000 from my parents in 2005 to purchase our 1st home. Repayment was to be at 4.2% over 5 years. We payed if off early in only 2 years.

Perhaps not such a "wise" financial decision, though, if I could have been making 5%+ and earning interest off the float? But that's not the point.

Since taking out the loan I didn't like the feeling of being indebted to family for money. To owe a debt of gratitude, thankfulness, and affection, yes, but not money! So while paying off the loan early might have set us back a bit, I am glad we did it.

Overall, I think if you *need* help from Dad and Mom to buy the house you are looking to get into, you should probably look for a cheaper house or save up your own cash for a while longer. This is what we *should* have done. But hindsight is 20/20.


My grandpa gave a loan to my dad, which he never made him pay back. My dad talked about doing it, but never did. Dang!

Mom and Pop would be my first choice - that is, if they have the money...and will be supportive if somehow you couldn't make a payment. After all, family is supposed to be there to help in any way that they can.

Whatever you do, make sure you shop mortgage rates and speak to a number of different lenders before you do anything.

Interesting concept. I wonder though, looking through the information they have on their website, what the Handshake basic does that you can't already do on your own. Blank documents like these can be found at office supply stores, etc, and in most states are legally binding. What does your $99 get you?

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