Question by : Are mortgage refinance closing costs the same as a brand new purchase?
Hi. My sister is transferring the house to us.
We have two options.
Just buy the house from her.
or refinance and take over the new loan.
would both options cost the same?
Answer by Angry Bird
No matter what, you have to buy the house from her.
You can’t just re-finance someone’s old loan.
The house would still belong to the other person and this would come back to bite you many years down the road.
Do not take over someone elses mortgage !
The difference in closing costs is not that much at all.
Google: closing costs followed by your state name.
What if she dies and leave that house in her will to someone else.
Who takes the property tax and insurance deduction – she does.
She’s going to want the present equity in the home. How would you pay her?
What if creditors sue her and put liens against her home?
What if the home catches on fire and is destroyed? She gets gets the check.
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