<prompt> Human: Many years back my dad purchased a house with the mortgage interest rate of 8.75 and has been unable to refinance the mortgage. Currently, the house is worth around 60 of the purchase price and to make things worst I just recently found out that the mortgage is being sold from Bank of America to Green Tree Servicing next monthA difficult lender to work with. With around 42k left on the mortgage. I have decided that it is in our best interest to pay off the mortgage. My father has a business with 25k cash in liquid and I am planning to loan them 6k. They can come up the rest. My questions:What kind of paperwork should we have in case of an audit by the IRS in the future? I am thinking a promissory note, a image of the statement before and after the 25k withdrawal, and a image of the bank check made to Bank of America. What kind of interest to set for the loan from his business? Supposedly if you do not set a interest rate, the IRS will in the event of an audit. Is 1 too low?What kind of interest to set for my loan to them?  <response>: Why loan the money as opposed just taking a draw? If its a sole prop, its his money anyway. If its an S corp and he has basis, its still his money. 