DEAR BENNY: My wife and I want to give our two grown children an interest-free loan for $360,000. They currently have a 15-year fixed 5 percent loan for this amount for a second home they both enjoy. With our given money they can immediately pay off the bank loan and pay us back $4,587 per month for approximately 6.5 years.

The $4,587 is their current monthly payment. Staying with the bank loan, they would fully pay it off in seven years and 10 months. Paying the loan off 16 months early will represent a savings to them of more than $73,000.

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