Author Topic: Re-finance recs (to add co-owner)  (Read 790 times)

mountainmama

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Re-finance recs (to add co-owner)
« on: November 04, 2019, 08:19:38 AM »
My partner and I are considering refinancing 'our' rental house. We've been together 11 years, have 2 kids, and built a house together, but aren't married. 'We' also have a rental house. I'm putting quotes because both of the houses are in his name. Mostly because life is crazy, and because I trust him, we've put off any legal issues with our set-up. (He definitely would NOT have either house without me.) However, now that our kids are both in school and the house we live in is almost finished, it feels like time to give me some extra piece-of-mind.

1) House 1 - we live here. The land is owned jointly between my partner and his sister. Owned outright. (Value? $175k)
2) House 2 - rented for the last 6 years, but renters just moved out. We're doing some minor renovations. Value, $275k, Mortgage balance $115k. Rate 3.375%
We were renting it at $1300, but the renters were close friends. New monthly income $1500-$1700.
3) 98% of cash and stocks are in my name. (~$100k)

 The deed for the home we reside in is complicated, since it's not just in my partner's name. I think the best solution is to add my name to the rental house. However, we'd have to refinance to add me as a co-owner.

Q1) How much would we have to lower the interest rate to make it worth it? We both have good credit scores, so I'm hoping we could get it down to 3.1%
Q2) Any recommendations for banks that are great and can offer the lowest rates?
Q3) Should we get a mortgage broker?

TIA


 

mountainmama

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Re: Re-finance recs (to add co-owner)
« Reply #1 on: June 06, 2020, 09:15:53 AM »
I never received any replies from this and we didn't re-finance because we couldn't find a good enough deal. Now that rates are lower, we're reconsidering. However, now that we have renters ($1800/month! which is $500 more than we were getting before.), I'm not sure how the re-fi would work. From my understanding, interest rates are higher for investment properties. Could we still get a standard rate since we don't have any other mortgages?

waltworks

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Re: Re-finance recs (to add co-owner)
« Reply #2 on: June 06, 2020, 09:44:27 AM »
No, if you're not occupying it, it'll be considered an investment property regardless of your other liabilities.

I'd sell it, $275k tied up to make $1800 a month is not a good property.

You can legally have your name added to the title (process will vary depending on the state you live in but it's not hard/expensive) without doing a refi. That's what I'd suggest.

-W

mountainmama

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Re: Re-finance recs (to add co-owner)
« Reply #3 on: June 06, 2020, 08:33:11 PM »
Thanks. I suggested we sell it when our last renters moved out, but he really wanted to keep it. I read the current mortgage, which I think made it clear that the name on the title couldn't be changed, but maybe that only means his name can't be taken off. I'll have him call to find out.

GizmoTX

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Re: Re-finance recs (to add co-owner)
« Reply #4 on: June 06, 2020, 08:51:43 PM »
Do you each have current wills & powers of attorney for health decisions & finances in the event of incapacitation?

cchrissyy

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Re: Re-finance recs (to add co-owner)
« Reply #5 on: June 06, 2020, 08:55:02 PM »
you can get added to the deed without involving the bank or a new mortgage. that's a job for the county recorder's office.

as a separate matter, if you do proceed on a new mortgage then yes you should expect to get investment property rates not the lower owner-occupied rates.

mountainmama

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Re: Re-finance recs (to add co-owner)
« Reply #6 on: June 06, 2020, 09:03:35 PM »
Do you each have current wills & powers of attorney for health decisions & finances in the event of incapacitation?

We have them ready, but not signed yet. Unfortunately we were just finishing getting them ready when SIP was ordered in our state. So we've been waiting for things to lighten up in order to find a notary.