Question by mike_gixxer: What’s the process for refinancing on a home mortgage?
My brother and I share a condo together and both of our names are on the deed. Next year I plan on moving. I know that we will have to refinance the loan to remove my name from the deed. Do I get any proceeds from the refinancing in order to purchase another home? Or will equity need to be taken out? Is this process treated the same as when a couple divorces and one moves out?
Answer by ernie_fergler
Great question. In the refinancing, you will give a deed to your brother that will be recorded at the same time as the new mortgage. The proceeds of that new mortgage loan will be paid out by the title agent. You need to make clear to the title agent, as a condition of your giving your brother a deed, that you are entitled to 50% of the remaining proceeds. You should have a written agreement with your brother to that effect, too.
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