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Subject:  Mortgage: How much to help a kid? Date:  6/30/2006  9:41 PM
Author:  JEDIKNIGHT Number:  96837 of 128887

Greetings all...

My kid sister and bro in law are buying their 1st home. They're college grads, professional and on their way to a fine future...but just starting out they're not beefed up in the savings department.

Her family..meaning myself, and our parents are fortunate in life...and lending her money, or gifting her with money is no problem whatsoever. I was hoping to explore 2 things:

1.)Helping young ones start out. On one hand I feel it's good for them to live check to check while starting out and take lumps. On the other hand, what's the big deal with just gifting her with some down payment is a nice thing to do for family.

2.)Her house would be $460k. She can get 80% mortgage/15 % second/ 5% mortgage insurance. However,,,,the more we give her, the less interest she'll pay.

Is there advantage in helping her go from 5% down to say...10% down? Obviously the interest savings, but is it a wise financial move?

Thank you in advance. Jedi
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