Friday, February 22, 2008

Mom, Dad? Can I have a house?

I just found this article on MoneyMagic. It's about "'new products' for parents helping with mortgage." Well, that's interesting!

Maybe they do things a little differently where I come from, but I have never heard of a parent helping the kid with its mortgage.

Parents have a choice when it comes to helping kids with mortgages: they can either use their income to help pay each payment, or they can give the kid a large lump sum to use as a down payment. If the parent chooses the latter, the kid can keep the mortgage in his or her name. The article says, "but many opt to keep the mortgage in their child's name to encourage independence."

Since when did buying a house for someone ever encourage independence? (Sheesh! I even had to pay for college myself!)

Well, anyway, those parents/borrowers now have a new product that allows them to switch from tracker-rate to fixed-rate interest free of charge, thanks to Cheltenham & Gloucester in the Uk Mortgages business.

I always find stories like this quite amusing: stories that make something seem so normal while I read it in awe at what some kids get away with.

I wonder if I can talk my parents into this... Think so?

Yeah, neither do I.

1 comment:

Danielle A. said...

Uhm... can I have their problem? I want my parents to buy me a house...