<prompt> Human: My dad is redoing part of his house and is going to be taking out a 55k loan from the bank for it. He knows I have a lot of money sitting around and has offered me the opportunity to loan to him at 2 for 15 years, however much I want 101520k, whatever portion Id like. He can get around 3 from the bank and a tax deduction so going through me at 2 we both benefit a bit. Details: 15 years, paid monthly at 2 annual. After 3 or 5 years if I decide I need the money I can give him 60 days to get a loan from the bank to pay me the remainder. It will be notarized so his wife will take over should he die early. Im 27, making 105,000 and maxing my 401k with a split between regular and roth. My dad makes around the same and is 55. I have around 47k in savings and after all expenses I will add around 20k to my savings per year. The only thing Im worried about is if I want to buy a homecondo in the next few years, I will be missing a huge part of that down payment. It seems like a lot to put up just to make an extra 10-17 a month for 15 years. At the same time, I realize that its better than leaving it in the bank getting almost nothing. Thoughts?  <response>: From a financial standpoint, you can get a better return than that lending to the US government, risk free. Plus mixing family and money is messy. Id let dad borrow on his own. HELOCs are tax deductible. 