You need to take a look at his business plan, evaluate it, and calc the numbers. It's impossible to get an answer without exactly information.Answer 2
Ask yourself the question in reverse....
If your mortgage were already paid for, would you refinance the house at that point?
I can sense in your question that you see the security of a paid off mortgage. Don't risk your family's security for an unknown business deal. Even if the business belongs to a family member.Answer 3
mortage is such long term bussines for me , need big plan big head big idea...for me i won't give myself much stress , i invested my money in asset management in switzerland which is low risk and safe investment. highly recommended for you and take a lookAnswer 4
What you should DO is talk to a CPA, who will charge you perhaps 2 or 3 hundred bucks to help you think this out. Meanwhile, what you should do is pay attention to ME, and think about the following elements that will go into your final decision. Take my response along to your CPA meeting. I said CPA -NOT some crummy tax preparer down the street and NOT a relative.
The business: Pay for itself after a year? This means 100K at no return for a year. Even if you put the 100 in a savings account, you'd see 3K in a year. Which simply runs to the more general question of the advanatges of paying off the home as compared to putting money in ANY alternative investment -forget the brother-in-law part.
If you pay off the house, what you KNOW is that you have increased cash flow, in the form of mortgage payments which now are like anew income stream to you.
And what you also know is that you have 2 kids who are going to get MORE expensive over time.
So they key question here is to look at the cost of being wrong with any of the alternatives. If you can afford the cost of being wrong, you can accept the risk of doing whatever you want.
The cost of being wrong with the nursing home deal is the $100,000 you invest, and possibly, if you are an owner or stockholder, even more if the place tanks and you end up owing people. Can you afford that?
What's the cost of being wrong about paying off the house? Suppose, for example, that the housing market REALLY goes south, and you've ended up paying off a house for more than what it now is worth -or suppose the nursing home deal is widly succesful -and you missed the boat? Run these scenarios out in your head and on paper.
Consider the possibility that paying off the house early might really be a terrible idea. It sort of depends, in part, on how much equity is there right now. And it depends on what other debts you have or will incurr over the next few years.
Gets complicated, doesn't it? Talk to a CPA and believe very little of what you see here on Answers. Except what I say, of course. Alternate choice to a CPA is a CFP (Certified Financial Planner) A person with THAT designation -CFP- is also a good choice.