The right way to loan money to a family member

Woman giving other woman changeBY CAROLYN O’HARA

When Ada Ou and her husband wanted to buy a foreclosure property this year in Tampa, Fla., they approached their bank for a typical mortgage loan.

But after being pre-approved, they were surprised to learn that the amount of interest they would pay over the lifetime of the loan would be enough to buy another home. Their surprise turned to dismay when they reviewed the loan paperwork — and discovered that the interest rate they were being charged was higher than the bank’s advertised rate.

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