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/u/Dull_Lavishness7701
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A few years back my wife and I were looking to move states. We wanted to buy a home because interest rates were low and we could afford something in a cookie cutter suburb. Problem was having a job in our new state and proof of income. We didn't want to rent for an extended period and basically waste that money. My in laws offered to buy the house we wanted and we could move in and basically treat it as our house. Our "rent" covers their mortgage payment, home insurance, property taxes and HOA fees. All upkeep and maintenance is on us. They are in no way landlords.
My father in law discussed gifting us the equity so we don't need a down payment (?) and sell the house to us at his purchase price. The problem as I see it is, he got a sweet 3% interest rate so our monthly payment is very low. If I were to buy the house now at current rates for that price, my payment doubles. So it seems we might be "renting" for awhile waiting on rates to drop. Thinking on it, seeing as how we might wind up spending 5 years paying principle, interest, insurance, etc. I don't think buying the house at their original purchase price is exactly fair. I feel like I should be buying it based on how much principle they have left on the mortgage. Am I potentially asking too much or given the scenario is that a reasonable ask?
submitted by /u/Dull_Lavishness7701
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Rent to own scenario
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My father in law discussed gifting us the equity so we don't need a down payment (?) and sell the house to us at his purchase price. The problem as I see it is, he got a sweet 3% interest rate so our monthly payment is very low. If I were to buy the house now at current rates for that price, my payment doubles. So it seems we might be "renting" for awhile waiting on rates to drop. Thinking on it, seeing as how we might wind up spending 5 years paying principle, interest, insurance, etc. I don't think buying the house at their original purchase price is exactly fair. I feel like I should be buying it based on how much principle they have left on the mortgage. Am I potentially asking too much or given the scenario is that a reasonable ask?
submitted by /u/Dull_Lavishness7701
[link] [comments]
Rent to own scenario
Continue reading...