AshMax Economic Sense

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Tax Implications of Paying Off a Home Loan in Cash?

home loan

My girlfriend and I owe about 460k on our California home. We may have the chance for a family member to pay off the loan in cash and make our monthly payments to them instead. What are the tax implications for both parties? We are currently in year 2 of a 30 year fixed at 6% and if we paid even a few hundred dollars less a month it would make a huge difference in our lifestyle. Any pros/cons doing this before end of year?