AFR vs. Adjusted AFR-Family Loan

[Anonymous]

HI,

I will be taking a mortgage from my mother to assist in the purchase of my home. I know the AFR is the lowest interest she can charge me per the IRS. I see both the AFR and the adjusted AFR on the IRS sheets. Can someone tell me the difference and which one we would use for this scenario. The adjusted is lower but I am unclear if we can use that amount for the loan or do we need to use the plain AFR?

[Anonymous]

i HAVE THE EXACT SAME QUESTION. CAN'T GET THRU TO THE IRS AND NO BANK OR MORTGAGE COMPANY HAS BEEN ABLE TO TELL ME. MOST BANKS AND MORTGAGE COMPANIES SAID THEY HAVE NEVER HEARD OF AN AFR....REALLY???

[Anonymous]

Literally the first google result would have explained that you should use the AFR because the adjusted AFR was intended for use for tax-exempt obligations.

[Anonymous]

Anonymous wrote:i HAVE THE EXACT SAME QUESTION. CAN'T GET THRU TO THE IRS AND NO BANK OR MORTGAGE COMPANY HAS BEEN ABLE TO TELL ME. MOST BANKS AND MORTGAGE COMPANIES SAID THEY HAVE NEVER HEARD OF AN AFR....REALLY???

Banks and mortgages companies are not there to provide you free tax and legal advise. Use an attorney.