Should I buyout parents mortgage?

[Mark L.]

My parents and I recently discussed potentially purchasing their home.  They are far away from me out of state, an older property I have no interest in owning and high RE tax burden.  Mortgage is minimal ~90K, house worth low 300K.

I proposed buying out the mortgage instead and ensuring I was 1st lien holder.  They would lose the int. deduction I believe? But I'd keep the money "all in the family" as they said at a lower rate.

Has anyone done this before?  Any tax consequences for either party here?  TIA!