Posted on: 25th Jan, 2010 07:05 am
i'm getting married in june. my fiance has a mortgage ($220,000) on a house (valued at approx. $220,000 in this market) that his brother is a secondary borrower on. we would like to remove his brother and put my name on the mortgage. his brother approves. i make a good salary ($80,000/yr.) and have good credit. the mortgage was recently refinanced at 5.5%. we are currently renting the house out and would like to sell it as soon as the market returns. we are wondering if we should refinance with my name on the mortgage or if there is some other way to substitute my name for his brother's?
a couple of things pop out here. first of all, if this is rental property, you're not likely to get any lenders to bite on another refinance. and this transaction you propose would need to be done via refinance. a person cannot simply be removed from a mortgage loan, unless a lender decides to grant "novation," which is a dicey proposition in this marketplace.
at 100% loan to value ratio, you'd be hard-pressed to be able to do much of anything at this time, especially on an investment property.
at 100% loan to value ratio, you'd be hard-pressed to be able to do much of anything at this time, especially on an investment property.