Posted on: 12th Mar, 2008 09:05 am
Currently I am co-owner of a home. The other owner is moving out and I have someone that wants to buy out her half. What steps should I take in this process? Currently I have a 5.75 fixed mortgage rate. When the new party takes over the mortgage will my rate change? Also, is there any way to get around closing costs or other fees since it is just a name transfer on half the mortgage? Is it possible to just go to a lawyer and have something drawn up? Thank you so much
hi bmurphy,
welcome to the forum.
i think first of all you need to talk with the lender. if the lender allows to assume the other owner's mortgage, then i think he needs not to pay the closing costs or other fees but if the lender does not allow to assume the mortgage then refinance will be the other option and in that case you will have to pay closing costs or other fees.
btw it is always better to consult with an attorney.
best of luck,
larry
welcome to the forum.
i think first of all you need to talk with the lender. if the lender allows to assume the other owner's mortgage, then i think he needs not to pay the closing costs or other fees but if the lender does not allow to assume the mortgage then refinance will be the other option and in that case you will have to pay closing costs or other fees.
btw it is always better to consult with an attorney.
best of luck,
larry
You have some great questions -- I cannot really answer them all. You should speak with the folks at the title company, if you can find a kind ear there -- they might explain what is involved.
Both of you are contracted on the lien -- You need to determine if it is 'assumable'. Also, you both are likely on the Deed of Trust, which is publicly recorded after the loan funds to the seller.
Your 'friend' is legally bound to take part in the payments on the mortgage. A refinance may be necessary; if so, there will be closing costs.
Hopefully, you'll get plenty of responses here. Still, go to your title company of record -- where you signed the loan -- and ask them.
Both of you are contracted on the lien -- You need to determine if it is 'assumable'. Also, you both are likely on the Deed of Trust, which is publicly recorded after the loan funds to the seller.
Your 'friend' is legally bound to take part in the payments on the mortgage. A refinance may be necessary; if so, there will be closing costs.
Hopefully, you'll get plenty of responses here. Still, go to your title company of record -- where you signed the loan -- and ask them.
