Posted on: 29th Apr, 2011 07:01 am
i am going to refinance my house with my husband. we had a 30 year mortgage which we paid on for 8 years. we are refinancing to a 15 year mortgage. both our names are on the current loan but my credit is about 660 and my husbands is better so the loan rate will be best if we get the new loan in his name only. i'm not sure i am understanding this right but i don't think i like that because if he dies i would only have 1/3 dower rights instead of owning it outright. would i have to qualify for a new loan if he would die before it is paid off? what if we divorced? which willl never happen but what if it did would he own more of the house than me?
Hi Lee Lee,
welcome to Mortgage fit,
Owning the house and owing the loan,these are two complete different things.Even if your husband owe the mortgage on his own (alone) and your name is on the deed of the property (% may be up to you..preferably 50-50 % ownership is good for both the parties) then you out rightly own your share in the house.
"Would I have to qualify for a new loan if he would die before it is paid off? "
If you have opted for the insurance (mortgage) then you do not have to worry about the payments if the person who owes mortgage is no more...Because the insurance company will take care of the any due payment and you will be relieved from the payment of the mortgage immediately.....
But if there is no insurance then most probably your lender will ask heirs whether they wish to refinance the mortgage on their name or not? (provided they qualify for it)
If person is not qualified then house will be foreclosed and lender will receive all its due amount from the sale of the property and any remaining amount will be distributed to the nominees as per their share in the property.
"What if we divorced"
If you live in the community state then you will receive 50 % equity in all the proceedings irrespective of what you have paid as mortgage payment or down payment...
If you are not living in the community state,you will receive your share as per your investment in the house....i.e. if you have put 40 % amount of the total value of the mortgage payment till date,you will be entitled to have 40 % share in the property....
Feel free to ask any further query if you have....
DIPA
welcome to Mortgage fit,
Owning the house and owing the loan,these are two complete different things.Even if your husband owe the mortgage on his own (alone) and your name is on the deed of the property (% may be up to you..preferably 50-50 % ownership is good for both the parties) then you out rightly own your share in the house.
"Would I have to qualify for a new loan if he would die before it is paid off? "
If you have opted for the insurance (mortgage) then you do not have to worry about the payments if the person who owes mortgage is no more...Because the insurance company will take care of the any due payment and you will be relieved from the payment of the mortgage immediately.....
But if there is no insurance then most probably your lender will ask heirs whether they wish to refinance the mortgage on their name or not? (provided they qualify for it)
If person is not qualified then house will be foreclosed and lender will receive all its due amount from the sale of the property and any remaining amount will be distributed to the nominees as per their share in the property.
"What if we divorced"
If you live in the community state then you will receive 50 % equity in all the proceedings irrespective of what you have paid as mortgage payment or down payment...
If you are not living in the community state,you will receive your share as per your investment in the house....i.e. if you have put 40 % amount of the total value of the mortgage payment till date,you will be entitled to have 40 % share in the property....
Feel free to ask any further query if you have....
DIPA