Zillow Advice: Refinance - Pay off mortgage $375k left http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ Zillow Advice | Zillow Real Estate I'm not understanding your ... http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ I'm not understanding your logic.<br/><br/>Imagine there are two houses, house one worth $800k and house 2 worth $600k for a total of $1,400,000.&nbsp;&nbsp; All these numbers are imaginary.&nbsp; <br/><br/>If you owe&nbsp; $375 k on the $800 k house (#1)&nbsp; and $600 k on the $600 k house (#2), for a total owed of $975 k.<br/><br/>If your rich relatives give you $375 k you can either pay off house #1 and owe $600 k total between the two houses. <br/>Or, you can pay $375 k on house 2 (so you owe $225k on it)&nbsp; and still owe $600 k total.&nbsp;&nbsp;&nbsp; In other words, it doesn't&nbsp; matter which house you throw the $375k, the total owed between the two houses will be the same. <br/><br/>What does matter is if you use $375 k to your house, someone will owe gift taxes.&nbsp;&nbsp; Then, when you give money to your parents from a loan, you'll owe gift taxes so you are proposing to trigger two rounds of gift taxes.<br/><br/>But, the next bit that isn't making sense is you want to buy a house for your parents in their name, rent out your house but somehow didn't mention that you need a place to live. <br/><br/>Note: none of my calculations take into account interest rates. <br/><br/> Sun, 29 Dec 2013 23:37:00 GMT http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ 2013-12-29T23:37:00Z I did some calculation....If ... http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ I did some calculation....If all the money go to the new house and Im still paying for this one. It will be double mortgage. This is including property tax and insurance is $2700 a month. If this one is paid off, I still need to pay property tax and ins = $650 a month.&nbsp;<br/><br/>If I use that $375k to buy a new one. And the house price gone up a lot nowadays close to 700k a piece. Ill be paying $3300 a month or something.<br/><br/>My best approach is this = Pay this one off first. Rent the whole house out since its near SF State U. Very easy to rent out. Total rent probably be $4000 a month. Basement is in use and getting $1300 a month now. Upstairs will be split into 2 parts cuz its actually quite big. 1 = 1500 including master bath 3 rooms together. 2nd part is huge living room and dining room = $1200 for sure will be rented.&nbsp;<br/><br/>Therefore, I can have $4000 to cover the 2nd one probably with a lil extra in the pocket too. I mean Im not a big financier or very smart investor but I can do what I can do the best with the best brain power I can have.&nbsp; Sun, 29 Dec 2013 22:25:00 GMT http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ 2013-12-29T22:25:00Z If you have rich relatives ... http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ If you have rich relatives who wish to help you pay off your loan, and then you wish to borrow money from your home to buy your parents a home - why not simplify the steps and have the rich relatives buy your parents a home?&nbsp;&nbsp;&nbsp; Gift taxes are also likely to be triggered if you buy your parents a home. <br/><br/> Sun, 29 Dec 2013 21:16:00 GMT http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ 2013-12-29T21:16:00Z &nbsp;3. There is another ... http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ &nbsp;3. There is another question I may as well ask here now. If my house is paid off and value gone up some. The current value is around 800k. It was 560k when I bought it. I built a legal unit in the basement. Paid the city for the blue print. 2 beds 1 bath 1 living room. Thats another 60k. So the total value is 800k now. So if this house is paid off. Can I take a huge equity line of loan out of it. And buy another house NOT under my own name but under my parents name. I don't wanna have 2 houses under my name. I want my parents to have one in Daly City or San Francisco again. But 80% of 800k is all I can take out right for the equity line of loan? so its only 640k, thats not enough for get in a good neighborhood in SF tho. I also heard that they don't even the built units so it may only be 80% of 750k = 600k only. I guess I can still get a beaten up house in Daly City for under 600k and Ill fix it up on my own.<br/>&nbsp; Sun, 29 Dec 2013 21:03:00 GMT http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ 2013-12-29T21:03:00Z The gift limit of $14,000 ... http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ The gift limit of $14,000 isn't a hard limit, simply if one gets a gift bigger than this amount then the person giving the gift has to pay gift tax on the money (which&nbsp; can be significant).<br/><br/>Having the relative write a check to Bank of America for your mortgage does not get around the gift tax issues because it is paying <u>your</u> mortgage.<br/><br/>You and your rich relatives should talk to a tax accountant to get the details so you can do it with minimum tax impact to the relatives and you.<br/><br/><br/><br/><br/><br/> Sun, 29 Dec 2013 20:39:00 GMT http://www.zillow.com/advice-thread/Pay-off-mortgage-375k-left/522714/ 2013-12-29T20:39:00Z