Parents Max Credit Cards to Assist Kids with Homes

Janice and Chris never got any financial or emotional help from their parentswhen they were buying their first home. They were on a mission to help their kids, but in the process, they racked up $80,000 in credit cards that would take them years to pay off.

The remaining balance on their own mortgage was $97,000, their rate was 6.25% and they had 19 years left to pay. Their mortgage payment including taxes and insurance was $1,216 per month. The minimum payments on the credit cards was $2,612. Not a pretty picture.

They did have a lot of equity in their home, estimated value was $350,000. So, the solution was to incorporate the balance of the 1st mortgage, plus the credit cards, doing a new mortgage of $182,000 for 15 years, with a new payment of $1,629. They are planning on putting the savings into a retirement account, looks like $25,000 a year going into this account.

Their children are very fortunate to have Janice and Chris as their parents.