Millennial paying parents mortgage

[Simon Dean]

Hello, I’m new here and thank you in advance for your support. Long story short, the choices I made in life reluctantly led me back to living with my parents and I now pay their mortgage.

My name is not on the mortgage, but I’m thinking of refinancing and taking it over. I have good credit. The house is worth $614,000 and they owe about $215,000.

What would you do? For examples, refinance, take out some equity and BRRRR? House hacking? Anything and everything is welcome. Thanks.

[Nathan Gesner]

It sounds like a good deal but mixing family and business is usually a bad idea, particularly when one party is apparently financially weak.

I would apply for a standard home loan to buy your parents out. Let them move somewhere else so you have control of the home.

The right thing to do is pay your parents a fair price rather than just pay off their loan. They should walk away with the equity, or most of it, rather than walking away with nothing.