By Emma Patch
From Kiplinger’s Personal Finance
Given today’s high home prices, many parents these days want to help their adult children buy their first home.
One way to do that is through an intra-family loan that works for parents and children.
You may be able to offer your child a lower interest rate than a conventional mortgage lender would while still earning a higher interest rate than you could earn from a savings account. For example, if you provide your child with a mortgage at a 4.5 percent interest rate, you’ll earn more than four percentage points more than the 0.24 percent average yield for a bank savings account. Your child, meanwhile, will pay significantly less than the national average for a 30-year fixed-rate mortgage, which was 6.86 percent in early April, according to Bankrate.com….