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Interfamily transfer questions

Posted on: 28th May, 2007 04:57 pm
My father want to sell his house to me. I have the cash available to pay off what he owes currently. Assuming I pay the said amount, my father can just sign the property over to me, correct?

And if that is true, I could then take out an equity line for cash & pay my father \" X \" amount, or would I have to apply for a mortgage?
Yes, your father can make a property transfer deed to give ownership of the house over to you. After the deed is made out you will have full ownership rights for the house.

Apart from an equity line you can also look at other mortgage options like fixed rate mortgages for making the lump sum payment to your father. You need to understand that a home equity line is also a type of mortgage for which the house will be collateral.

Miller
Posted on: 28th May, 2007 05:24 pm
rupot, what is the current balance on the present mortgage that your father owes and how much you will be paying your father for the house? knowing that I would be able to tell if it would be better to take out some other type of mortgage instead of a home equity line of credit.
Posted on: 28th May, 2007 05:32 pm
I would put one advice ru4pot2.

Compare the amount you want to borrow and the rates available for different mortgages. It will help you in deciding which type of mortgage will be best suited for your need.
Posted on: 28th May, 2007 06:00 pm
Hi,

Equity line is also one type of mortgage. So, before taking any decision first survey the market and check which loan you are getting at low cost. Then, only go for the option which one is right for you.
Posted on: 28th May, 2007 11:22 pm
hi,

i think the home which you are looking to purchase from your father is already mortgage. and in that case if you are looking to take money against the home, then you need to go for refinance. and while doing so, you can transfer the mortgage in your name and choose any type of loan option which will suit you.

thanks
Posted on: 28th May, 2007 11:29 pm
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