Posted on: 10th Mar, 2007 01:38 pm
My son owns a home and has a $55000 mortage on it. His credit is less than good and mortage rate is high. Not to mention it is a ARM loan. He is now going into the Army and my daughter is now living in his house and taking over payments. I(mother) want him to sign over the house so I can get a much better rate on a new mortage. How is this possible?
Thank you
Thank you
hi carrie,
welcome to forums.
what i can think of is you take out a new loan against the same property and pay off the existing loan. while you sign on the new loan document at the time of settlement, your son can sign over the property-title to you. so, you get the title and also a new loan which you will have to manage and repay.
the process that i mentioned above is known as refinance. depending upon your financial situation and credit score, you will be able to secure a good rate.
in order to get a mortgage rate which you can deal with, you need to shop with a number of lenders and then do some calculations with the fees and the monthly payments, compare them and decide upon the right offer for you.
it's no use getting a rate of interest higher than that of the current loan. you should look out for lower rates. in case you are not able to get a lower rate currently, wait for some more time, allow your son to make the payments during that period. then you can start shopping again for a better interest rate.
thanks,
james.
welcome to forums.
what i can think of is you take out a new loan against the same property and pay off the existing loan. while you sign on the new loan document at the time of settlement, your son can sign over the property-title to you. so, you get the title and also a new loan which you will have to manage and repay.
the process that i mentioned above is known as refinance. depending upon your financial situation and credit score, you will be able to secure a good rate.
in order to get a mortgage rate which you can deal with, you need to shop with a number of lenders and then do some calculations with the fees and the monthly payments, compare them and decide upon the right offer for you.
it's no use getting a rate of interest higher than that of the current loan. you should look out for lower rates. in case you are not able to get a lower rate currently, wait for some more time, allow your son to make the payments during that period. then you can start shopping again for a better interest rate.
thanks,
james.
Welcome Jameshug,
Great job . I liked ur advice very much.
Great job . I liked ur advice very much.
That's fine Guest. :)