Posted on: 06th Jul, 2010 05:16 pm
my significant other signed his home over to me by quit claim deed right before his death. we both have lived in the house for over 10 years. can the mortgage company make me refinance due to the changing of hands per se? thanks! patti
Hi PATTI!
Welcome to forums!
If the mortgage was in your deceased significant other's name, then the mortgage company can ask you to refinance the loan in your name. You should also take steps to refinance the loan as it will make you the borrower of the mortgage. In case of any financial hardship, you will be able to negotiate with the lender if the loan is in your name.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the mortgage was in your deceased significant other's name, then the mortgage company can ask you to refinance the loan in your name. You should also take steps to refinance the loan as it will make you the borrower of the mortgage. In case of any financial hardship, you will be able to negotiate with the lender if the loan is in your name.
Feel free to ask if you've further queries.
Sussane
Yes, the mortgage company can help you refinance the existing mortgage loan. Since refinancing means paying off the existing mortgage to create a new one, you may also go a step further by combining both the primary and the secondary mortgage into a new loan. In that case, the interest rate will be much lower on your loan repayment.
Refinancing is also one way to decrease the term of your mortgage. So after refinancing, if you adjust the term of your loan by getting an ARM (Adjustable Rate Mortgage), it will decrease the interest rate and also reduce the overall interest cost. Consequently, the loan will be paid off earlier, only the monthly payments will be somewhat higher.
You can also check out the 2 percent rule which will give you an approximate idea about whether you should go for a refinancing. The rule tentatively states that if your interest rate on your new mortgage has reduced by at least 2%, you can go for a beneficial refinancing.
Refinancing is also one way to decrease the term of your mortgage. So after refinancing, if you adjust the term of your loan by getting an ARM (Adjustable Rate Mortgage), it will decrease the interest rate and also reduce the overall interest cost. Consequently, the loan will be paid off earlier, only the monthly payments will be somewhat higher.
You can also check out the 2 percent rule which will give you an approximate idea about whether you should go for a refinancing. The rule tentatively states that if your interest rate on your new mortgage has reduced by at least 2%, you can go for a beneficial refinancing.