[fintstone]

Originally Posted by 74-911

Are you prepared to come up with the full amount you owe her at any time? Do you have siblings? What kind of health is your mother in ?? Lots of gotchas in that scenario.

Yes. If necessary...but you really want to set it up like an annuity so her money is returned over time...only she gets a safe, but higher rate of return and you pay a slightly lower interest rate than you would have. Obviously, she can invest her money any way she likes, but it is best to get a "buy in" from any concerned parties.

I had an amortization schedule and claimed it on my taxes as interest paid because I needed the deduction and she claimed it as interest income received because her income was low enough that it did not impact her tax wise. In my case, I would probably even pay a bit better than the low rates now and use the money where I would have to normally pay a higher rate (no down, no qualifying rates are higher).

In my case, the loan is long paid off and her financial situation is much better now as she has inherited a bit from her mother and aunt.