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Refinance parents mortgage (California)

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Icon Mini Profile filterspm





Joined: 25 Sep 2010

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Post Posted: Sat Sep 25, 2010 11:00 pm    Post subject: Refinance parents mortgage (California)
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Hi, I would like to ask few questions:

Due to my parents' financial hardship, I have paid their mortgage more than a year, and I think it might be good to refinance mortgage using my name so I can get more tax deduction and better interest rate.

My father is only one who is on deed, and I want to add my name to it and immediately refinance the mortgage.

I do not live with them, so it's not my primary house. I have no plan to cash out. Is this possible?

Also, I believe this may trigger gift tax; if so, then which price becomes basis when the current price is below than when my parents purchased the home? (what I know is basis should be the price when my parents purchased the home, but just wonder ... )

Thank you very much for your help.
Icon Mini Profile adonis
adonis




Joined: 22 Oct 2005



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Location: ALASKA
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Post Posted: Mon Sep 27, 2010 12:59 am    Post subject:
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Welcome filterspm,

You can ask your father to sign a quit claim deed and add your name to the property. Though it will be your second home, you will be able to refinance the loan and don't have to take a cash out. You father will be liable for paying gift taxes, if any. There is a life time gift tax exemption of $1 million.

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Icon Mini Profile tfaulhaber1
tfaulhaber1
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Post Posted: Tue Sep 28, 2010 12:16 pm    Post subject:
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Yes it's 100% possible. Your father will need to sign a quit claim deed and add you to the property. Then he'll refinance the home and add you as a co-signor to the mortgage. And from what I see that's exactly what ADONIS wrote...ha! Long day already!
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