Father willing to buy out my mortgage and I pay him. Worth doing? Pros and cons?

[Zachary Martin]

So the scenario I have is that I am currently in the process of refinancing.  Thinking about it, I posited the question to my dad if he were to "pay/buy it off", and I were to pay him instead of the bank, he would benefit from the interest payments and nothing (ideally) would change on my end.  So I guess my questions would be...

-Is this do-able? (money isn't the issue)

-Would I still be able to maintain a credit history/record by paying him? Or would this mess with it as a result?

-Can I still deduct during tax time?

-Is there any legal situations that need to happen to make this work?

-Is there any pitfalls or problems I would run into?

Thanks!

[Tiger M.]

@Zachary Martin I think its a great idea. Keeps your interest in the family. Your credit will have pros and cons. It will show the payoff without refi, but unless your dad goes to a local agency to report the credit, you won't get the benefit of on time payments. Your debt to income will greatly improve though. Yes you can still take the interest deduction. There really aren't any legal issues with an installment sale agreement.