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 ?
.
Yes, and I’ll be glad to help you.
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 buy agreement with your mom that stipulates what ownership you own and what ownership she owns on the resulting refinance. You will need that buy 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 makes 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 force 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 scale. Be sure to have alternative beneficiaries.
Here are some links that you force want to read up on:
The HUD-1 closing costs form clarified:
HUD Sample of Excellent Faith Estimate:
HUD Revised Borrower’s Closing costs guidelines:-$[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]:
Mortgage Calculators – Includes result if you will qualify for a mortgage:
Once per year free credit report from all three credit reporting agencies:
Predatory Lending information from ABA:
Uniform Residential Loan Application:=%22Uniform%20Residential%20Loan%20Application%22
Mortgage Loan Fraud a report
IRS publication on Home interest deduction: and or:
IRS: Selling your Home Publication: and
IRS: Tax information when buying a home:
IRS: Deductible costs when purchasing real property:
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 know it a small bit better.
Buena Suerte
She could sell you a part as consideration for taking on the new loan.
I can help! Shoot me an email to, and let’s chat!
Marty
If your mothers mortgage is FHA or VA then the mortgage is assumable with qualifying income and credit. If not, the simplest 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;. Someone may post that there is a seasoning issue but for a in compliance product their is no seasoning to refinance. Leave your mother on title but not on the loan.