Originally Posted by ERD50
Now, relevant to the OP - if the $20,000 is truly dependent upon paying down the mortgage - then it is a no-brainer - you pay down the mortgage and say 'Thank You!'!
Yep. Accepting the money and applying it to the mortgage was never in doubt. In my original question, I asked that since the kids were receiving a gift of $20K with the contingency that it be applied to their mortgage, what were their options? Re-fi? Apply to principal resulting in a shorter term? Apply to principal and have the bank recalculate lower payments for the same term? Etc.......
Looks like they're going with the option of lower payments which is fine with me and seems like a reasonable choice given their options and their personal circumstances.
Thanks all for the comments and discussion.