Grandchildren

The average price of a home in MN is $335,000. With 3% down ($10,000) a 30 fixed interest loan would cost $1991 principal and interest, $300 property insurance, $79 for PMI for a total month payment of $2,627. A young family with two incomes earning a gross of $100,000 and good credit with minimal other debt can qualify for a bank loan. Your granddaughter recently married and would like to purchase a home but they don’t have the down payment. She and her husband earn $50,000 each and qualify to purchase a $335,000 home. You can make them a gift of $10,000 or you can hold onto the money and give it to them years later after your dead. Something to think about.