If my mother is selling me a home at $200K with a 6 year mortgage, forgiving $38,000 annually as a gift for myself and spouse. We will be responsible for the interest. The AFR shows for a mid-term loan for February 2025 as 4.52% annually if I am reading the AFR chart correctly... Would you make the interest higher to take in consideration the fluctuation in the next few years? Would you take less principal annually and use the remaining gift to cover the interest rate?
