Question by nephillypinkfan: Can you add people to your mortgage when you refinance?
My mother isn’t working and I wish to refinance her mortgage using my income since her rate is 8%. I live in the property and want to have some ownership rights as I’m paying the mortgage and such. She has no problem with me doing so. Any suggestions ?
Best answer:
Answer by seanferrellmba
http://www.sapphire.lendingstation.com/default.aspx.
Yes, and I’ll be glad to help you.
Add your own answer in the comments!
yes!
You will need to qualify for the loan first and then shop for the best rate and then apply for the loan.
You should have a purchase agreement with your mom that stipulates what ownership you own and what ownership she owns on the resulting refinance. You will need that purchase agreement to show to the loan officer as to why you are doing what you are doing and it will show that at closing, a deed from your mom to you and your mom will be executed showing what each one of you owns in the title.
You will both need to apply for the loan and sign both the promissory note that creates the debt and the mortgage which gives the lender the right to proceed against you and your mom in court and take the property if payment on the note is not made.
Since your mom’s interest will change in the propety you might also want to consider having your mom deed on death her interest to you if you live in Arizona, Arkansas, Colorado, Kansas, Missouri, Nevada, New Mexico, Ohio, Wisconsin, Florida. This would eliminate a novation to her will or probate issues if she has no will. You can do the same thing but deed to your mom or the heir of your choice. Be sure to have alternative beneficiaries.
Here are some links that you might want to read up on:
The HUD-1 closing costs form explained: http://www.alta.org/consumer/hud1.cfm
HUD Sample of Good Faith Estimate: http://www.hud.gov/offices/hsg/sfh/res/resappc.cfm
HUD Revised Borrower’s Closing costs guidelines: http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=MLET&s1=06-$ [no]&op1=AND&SECT1=TXTHLB&SECT5=MLET&u=./hudclips.cgi&p=1&r=23&f=G
Real Estate Settlement Procedures Act (RESPA) [about closing costs & settlement procedures]: http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
Mortgage Calculators – Includes finding if you will qualify for a mortgage:
http://www.mortgage-x.com/calculators/Pre-Qualifier.htm
Once per year free credit report from all three credit reporting agencies:
http://www.annualcreditreport.com/cra/index.jsp
Predatory Lending information from ABA: http://www.aba.com/Consumer+Connection/CNC_pred1.htm
Uniform Residential Loan Application: http://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/1003.pdf#search=%22Uniform%20Residential%20Loan%20Application%22
Mortgage Loan Fraud a report http://www.fincen.gov/MortgageLoanFraud.pdf
IRS publication on Home interest deduction: http://www.irs.gov/publications/p936/ar02.html#d0e1835 and or: http://www.irs.gov/faqs/faq3-6.html
IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html and http://www.irs.gov/publications/p523/ar02.html
IRS: Tax information when buying a home: http://www.irs.gov/publications/p530/ix01.html
IRS: Deductible costs when purchasing real property:
http://www.irs.gov/publications/p551/ar02.html#d0e2000
Needless to say there are a lot more but these will give you a general overview. Work with a reputable local lender and a mortgage broker and compare not only the rate of the fixed note and mortgage but the costs to refinance with either one of them. I hope this helps you understand it a little bit better.
Buena Suerte
She could sell you a portion as consideration for taking on the new loan.
I can help! Shoot me an email to msmith@premierloangroup.com, and let’s chat!
Marty
http://refinance-mortgage.blogspot.com
If your mothers mortgage is FHA or VA then the mortgage is assumable with qualifying income and credit. If not, the easiest and quickest way is to Quit Claim your self on title have it recorded (with your mothers approval). The next step is to contact a Mortgage Bank ie; http://www.branch777.com. Someone may post that there is a seasoning issue but for a conforming product their is no seasoning to refinance. Leave your mother on title but not on the loan.