Can I Refinance My Husband’s Mortgage By Putting My Name on the Deed? I Have Good Credit.

Posts Tagged ‘home refinance’

Can I Refinance My Husband’s Mortgage By Putting My Name on the Deed? I Have Good Credit.

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A reader of AskTheMoneyCoach.com wanted to know whether or not they could do a certain maneuver in order to refinance a home mortgage. Here’s the person’s question:

Q: Is it possible to temporarily transfer the title to my husband’s home into my name? This way, we could refinance with my credit scores.

A: Unfortunately, what I think you’re trying to do is likely not possible at all for several reasons. First of all, if the home and mortgage are currently solely in your husband’s name, he doesn’t just have the title issued in his name; there’s also a mortgage or some kind of a promissory note to a bank that’s attached to it, which he is legally obligated to pay.

Continue reading “Can I Refinance My Husband’s Mortgage By Putting My Name on the Deed? I Have Good Credit.” »

How to Know When to Refinance Your Mortgage

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Author: The Money Coach

Q: We have a 5% loan and we owe a little over $132,000 left on it. It was appraised at $168,000 in June 2010. We are now looking at refinancing it at 4.25%, and it was appraised at $148,000 dollars. Since the appraisal was low, we will have to take out PMI but it is only a $20 or so difference in payment.

Still at a 30‑year loan, and we plan on staying here for some time in the Midwest. Is it a good idea to refinance at this time, or leave enough alone? We have three kids in college and not a lot of money in savings.

A: The only good way to know whether or not a mortgage refinancing makes sense is to run some numbers and to do a break‑even analysis.

Continue reading “How to Know When to Refinance Your Mortgage” »

I can’t refinance my house without my husband’s signature. What should I do?

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Author: The Money Coach

Q: A bank won’t let a woman refinance her house without her husband’s signature. The problem is that the woman and her husband separated after being married for just one year, and the current mortgage is in her name only. What should she do?

A: I have a question from a reader who wanted to know about refinancing her home loan. She said, “I wanted to refinance my house in order to consolidate all my bills. I got married last year and now I’m separated. I bought my home alone without a co-signor but I was told by my bank recently that could not refinance my home without him. Him, I guess, being her estranged husband. She wanted to know what she could do. And also, is this legal?”

Well, the question is a good one because frankly, lenders have to abide by federal law which dictates what they can and can’t ask you with regards to getting a mortgage. Sometimes you might think that some of these questions are particularly intrusive or not relevant but in the lender’s mind, oh yeah, they are plenty much relevant.

For example, I suspect that your lender was saying you can’t “refinance without your ex” for one of two reasons. Either, one, they are saying to you that you don’t qualify on your own in terms of the debt to income ratio that might be different now than it was before when you first bought your home. Perhaps they’re saying also though that they are worried about the financial predicament in which you might find yourself post-separation and ultimately, post-divorce, if a divorce does in fact take place.

Obviously, a divorce is a personal matter but it also has major financial implications. So, it is not uncommon once you tell a lender that you’re separated or divorced for them to want to know some details about it. After all, divorced people, many of them actually go through bankruptcy subsequent to the separation. So, they’ll want to know things like – Are you getting or receiving alimony or paying alimony? Is there child support involved here? Which liability did you guys jointly rack up? Those kinds of things.

So it’s not uncommon for lenders to try to get information about your financial situation as it pertains to your spouse, your estranged spouse or your recently divorced spouse. So, what I would do is, seek a little bit of clarity from lender and because they certainly can’t or shouldn’t be saying to you as a woman that you cannot refinance or get a mortgage just because you’re a woman and because you need to have a man, or your husband or any other person on the loan. I suspect there are some other reasons why they’re saying you don’t qualify to refinance that home loan. Do find out what their credit score requirements are, how much equity that they say you need to have in the house, what kind of a debt to income ratio they want you to have. In other words, the percentage of bills that you are paying versus the amount of income that you are bringing in by yourself. All of those factors will matter greatly when it comes to approving that home loan you want and need.

How can I refinance my mortgage and get a lower interest rate?

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Author: The Money Coach

Q: I have a question from a reader who wants to know about getting a lower rate on her mortgage. She said, “I bought my house in 2007 and I now owe more than my house is worth. But I want to get a lower interest rate than the one I have right now. I can’t use the company that I’m paying my mortgage to because they’re just a mortgage broker. They now own my mortgage. I would like to get a lower interest rate though. How can I do it?”

A: Well, I hate to tell you this but you probably won’t be able to take advantage of these historically low interest rates that we are getting right now, that we’re seeing right now. Of course, recently, according to Freddie Mac and Fannie Mae, 30-year fixed rate mortgages have dropped to their lowest levels in decades. We’re talking about 4.35% or so. That’s amazing for anybody who wants to refinance their loan or do an initial home purchase.

The problem for you though, is that you said your house is under water. That you owe more than the house is actually worth. Think about the lender’s risk here. If you’re saying that you owe $300,000 on your mortgage, and I’m just making up a number here. But the house is only worth $250,000, why would a lender extend to you a new 30-year loan after you just got it three years ago, extend your payments again over time and give you fresh money for something that’s not worth that amount? They simply won’t do it. Your best bet is to look into one of the federal government programs that the Obama Administration has launched in order to help homeowners who are struggling with their payments, who are under water, who have recently lost their jobs, or who are otherwise finding their homes unaffordable. Check out the Making Home Affordable Program for more information.

Refinance with Cash out? (mytotalmoneymakeover.com)
Drop in mortgage refinancing overwhelms rise in loans to buy (usatoday.com)
Your First Home: The Smart Way to Get It and Keep It

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Posts Tagged ‘home refinance’