What is the average cost to remove someone from a mortgage l

wisher115 · Joined: 18 Mar 2008 Posts: 1 1.35 Dollars($)

Me and my sister took out a mortgage loan and now she wants to buy her own house. I don't want to refinance and my lender told me that my sister will need a purchase contract or letter that states that my sister will sell her portion of the property back to me at no cost. It will cost 550 to do this. Is this expensive or an average price to have this done?

banker0679 · Posted: Tue Mar 18, 2008 8:55 am Post subject:

it maybe in your sister's best interest to have you refinance IF she's on the loan. Otherwise this debt will always be in her name until you refinance.

If that isn't the case, then you can do a QCD Quit Claim Deed for her to hand you the deed over. The prices may vary with attorney/title company

Caron

Hi wisher,

Welcome to our forums.

You mean that you'll have to pay $550 to the lender for allowing you to take over the entire property? Well, this actually varies from one lender to another, so I cannot say really. But didn't the lender ask you to refinance? Generally they do so because there's no guarantee whether your sister will be able to repay the loan if she goes for another mortgage to buy her own home. So, think before you keep the loan in both of your names instead of only your name.

Good luck

0.10 Dollars($)

$550 for a release seems reasonable. Your current lender will underwrite your ability to pay the existing mortgage before granting a release to your sister. Your sister will need to deed her interest to you. Her spouse, if any, may have to sign deed depending on state law.

Guest 0.10 Dollars($)

Thanks everyone. The lender did ask me if i wanted to refinance, but at the time it wasn't worth it.

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