NW-Bound
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- Joined
- Jul 3, 2008
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- 35,712
This is the flip side of another thread regarding loaning money to relatives and friends.
I just recalled that we DID borrow money from a friend of my wife's family when we bought our first home. In 1980, just 4 months into my first good-paying job, we wanted to buy a 1800-s.f. 4-bedroom home. The FHA mortgage interest was 14%, and that just killed home prices. So, there were good deals to be had.
We borrowed a few thousand dollars (don't remember how much) from a long-time friend of my wife's family, with the intention of repaying ASAP. No interest was offered nor asked. No paper was signed. As my wife arranged for this loan, I did not know if she asked or the man made the offer, knowing that we would be a bit tight.
We scrimped for the next few months, and paid it off ASAP, as we promised. Other than a bed and two bar stools so we could eat at the kitchen counter, we would not buy any furniture until this debt was paid off. This generous man even offered for us to consider it as a gift, and not having to pay it, but we absolutely declined.
Yes, we still see each other from time to time.
PS. We never have to borrow money from friends or relatives since. In fact, ever since they stopped the interest deduction for consumer loans, we started to pay cash for cars.
I just recalled that we DID borrow money from a friend of my wife's family when we bought our first home. In 1980, just 4 months into my first good-paying job, we wanted to buy a 1800-s.f. 4-bedroom home. The FHA mortgage interest was 14%, and that just killed home prices. So, there were good deals to be had.
We borrowed a few thousand dollars (don't remember how much) from a long-time friend of my wife's family, with the intention of repaying ASAP. No interest was offered nor asked. No paper was signed. As my wife arranged for this loan, I did not know if she asked or the man made the offer, knowing that we would be a bit tight.
We scrimped for the next few months, and paid it off ASAP, as we promised. Other than a bed and two bar stools so we could eat at the kitchen counter, we would not buy any furniture until this debt was paid off. This generous man even offered for us to consider it as a gift, and not having to pay it, but we absolutely declined.
Yes, we still see each other from time to time.
PS. We never have to borrow money from friends or relatives since. In fact, ever since they stopped the interest deduction for consumer loans, we started to pay cash for cars.