conversation: User (PFBorrowingQuestion): "My wife and I currently live in San Francisco. We're both 30 and and have just over $300k in savings (not including retirement accounts), earn around $250k between us and are thinking of buying within the next 2-3 years either in San Francisco or Melbourne, Australia (TBD). We're not set on the price range currently but imagine it'll be around the $700k-$800k mark. \n\nMy wife's parents have offered to help with the home loan and have given us two options to choose from:\n\n1. $50k *gifted* toward the home loan.\n2. $100k *loaned*, no-interest to be repaid over 12 years. \n\nWhich would be the wisest option to go with?"
  Self: "One option is them giving you 50k and the other is them giving you a 30k + a 70k mortgage at 3% interest rate. \n\n\n\nTake the 50k. \n\n\n\nIn fact, using math you can show that so long as you are eligible for an interest rate below 5.95%, the 50k debt-free is better without question.  \n\nhttp://m.wolframalpha.com/input/?i=100000+%3D+50000*%28X%29%5E12\n\n\nIf you can't get a better mortgage rate than that, then taking the 100k is better. "
  PM_ME_YOUR_PRIORS (PM_ME_YOUR_PRIORS): "That slightly overestimates the value of the interest-free loan, since it doesn't take into account that you get the money later when it isn't worth as much to you."
  Self: "I don't believe it does. Can you math me wrong? "
  