Posted on: 24th Sep, 2007 10:37 pm
My inlaws have a condo that they would like to tranfer ownership over to my wife and I. They currently have an outstanding mortgage on the condo. Can we have the mortgage transferred into our names or do we have to get a new loan in our names at a differant rate? Cant they gift it to us so we can keep the same property tax rate and avoid the closing costs involved in purchasing a new mortgage?
hi jaspizzi,
welcome to the forum.
after getting over the property ownership in your name, the lender will require you to refinance by taking a new loan in your name because of the change in title from the time the actual loan was taken.
but if you want to avoid the closing costs involved with refinancing of the new loan, then you can go for a novation. in that case, your in-laws can file for a novation and transfer their liabilities towards the mortgage to you. it will remove their name form the loan and will add your name on it.
welcome to the forum.
after getting over the property ownership in your name, the lender will require you to refinance by taking a new loan in your name because of the change in title from the time the actual loan was taken.
but if you want to avoid the closing costs involved with refinancing of the new loan, then you can go for a novation. in that case, your in-laws can file for a novation and transfer their liabilities towards the mortgage to you. it will remove their name form the loan and will add your name on it.
You need to find out if their current lender will allow you to "assume" their existing loan.
However more information is needed to find out if it is even a good idea to assume it.
Even with closing costs if it is less money to purchase it then that is what you should do.
Closing costs are not always bad as long as they can save you money in the long run or whatever your goals are.
Finally if they do sell to you they can gift the equity which puts you in a better position to get a better loan program.
However more information is needed to find out if it is even a good idea to assume it.
Even with closing costs if it is less money to purchase it then that is what you should do.
Closing costs are not always bad as long as they can save you money in the long run or whatever your goals are.
Finally if they do sell to you they can gift the equity which puts you in a better position to get a better loan program.
