re: Borrowing money from family and being charged interest?

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GTFO of here with your logical, sound reasoning!

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I assumed that's what the FIL was doing. Paying off the debt to the loan agency and then working the $10k in house at 2%.

My gut tells me he was doing this to help the OP from the strain of a bank, lower the couple's DTI ratio, and provide some flexibility to the OP if it's ever needed.

I am just shocked at the sense of entitlement that a lot of posters are showing in this thread...why in the hell does everyone think the father in law owes it to OP to give him a gift of tens of thousands of dollars?...

bunch of fricking democrats in this thread, apparently...

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I assumed that's what the FIL was doing. Paying off the debt to the loan agency and then working the $10k in house at 2%.

My gut tells me he was doing this to help the OP from the strain of a bank, lower the couple's DTI ratio, and provide some flexibility to the OP if it's ever neede

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that was tongue in cheek of course, that is the sensible thing to do if the in-laws are in a position to help them get a foot up, long after I thought I had "made it," my folks would give all of us kids "gifts" in weird amounts, just under the tax liability, just because, I guess they were grateful we'd all gotten out from under their roof

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The borrower is subservient to the lender. This will alter your relationship with the family, forever.

It's got to be a gift or nothing at all.

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Democrat, hunh?

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The borrower is subservient to the lender. This will alter your relationship with the family, forever.

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Here's my experience from spending this weekend with some good friends of ours who come from a financially illiterate family that would hold a loan over their heads. We were discussing cell phone bills:

Our friends (who are struggling to get on their feet financially) just voluntarily took themselves off their parent's cell phone family plan where they were paying $120/mo total to their own plan for $215/mo. Why? Because they were too prideful and couldn't get over writing a check to them each month.

Then there's my wife and I who could easily cover a $215/mo cell phone plan who are still on my FIL's plan at $58 total. Why? Because it lowers their bill to keep us on it and we're able to save a few bucks along the way.

I don't feel indebted to my FIL in the least bit.

Hell no.

Any loan fricks up a relationship with your inlaws.

If they want to give you money, then give it.

But you are really saying "I got this. I'm a man and can handle my business" in an unequivocal way.

That's a good example golfer. and more like an expense sharing arrangement.

A loan changes shite.

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A loan changes shite.

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It doesn't have to. Provided both parties understand what's going on and act like adults.

My wife and I have been on the other end of this scenario (lenders), and didn't charge interest. It's been about 5 years and her aunt still hasn't completely paid us back. She will eventually, and we don't really care because she is a wonderful woman, but we're obviously losing some purchasing power on the money. It was more than what you're talking about btw.

Bottom line... I wouldn't make my daughter and son-in-law pay interest on a loan... But I don't necessarily think the guy is a dick for doing it either. He's still doing you a favor, and it has to be nice knowing he thinks you're trustworthy enough to pay it back.

My grandparents lend money to family all the time apparently. When my parents bought their latest house they insisted and told them they need to take it, everyone else has. They charge a small interest rate comparable to keeping it in whatever savings/investment they had. Cheaper than a traditional loan. They also know that every few years they give all the kids something so that it's not all lost in estate taxes and such, so they just forgive the loans. I think that coupled with the fact that no one in my family is hurting for money is the reason no one cares that they charge interest.

Some of these loans are well into he 6 figures, so not exactly like the OP.