A mortgage is a legally binding contract, so it is not possible to remove a name from the loan documents until the mortgage has been paid in full. According to the San Francisco Gate Home Guides, the mortgage loan can be refinanced in the name of the person who wishes to keep ownership of the home, or the property can be sold to settle the debt.Continue Reading
Until the mortgage loan is refinanced or sold, both parties who signed the documents and were approved for the loan are equally responsible for making payments per the mortgage terms, according to Mortgage News Daily. Regardless of who is living in the home, both parties are subject to collection efforts if the payment terms are not adhered to, including negative credit reporting, wage garnishments, lawsuits and tax liens in both names.
As noted by the San Francisco Gate Home Guides, if the property is refinanced and a single party takes responsibility for the payments, the co-signer on the original loan must sign a quit-claim deed in order to be removed from the deed. The quit-claim deed is then recorded in the county where the property is located. The original co-signer must also surrender ownership rights to the property. For this reason, particularly in cases of divorce, a judge typically orders the home to be sold in order to relieve both parties from the ongoing obligations.Learn more about Credit & Lending
An adjustable-rate mortgage, or ARM, is a home loan in which the buyer gets an introductory interest rate for a defined period; then the rate is adjusted annually. Common ARMs are 3/1, 5/1, 7/1 and 10/1. The first number indicates the introductory period, and the "1" demonstrates the annual adjustment.Full Answer >
To get off a joint mortgage, the other party needs to agree to release you of the financial responsibility or the argument can be taken to court for a judge to decide. At a tactical level, the mortgage must be refinanced to remove one of the two parties from it.Full Answer >
The amount of private mortgage insurance, or PMI, required can range from approximately 0.3 percent to 1.15 percent of the loan amount yearly. This percentage varies based on the amount of the down payment and the loan amount. To calculate payment, multiply the loan amount by the PMI percentage.Full Answer >
Nationstar Mortgage offers multiple refinancing options, including changing the terms of the current loan or lowering the interest rate, according to Nationstar Mortgage. This is all initiated online with an easy application or by calling the mortgage company for more information. Nationstar states that the online form to request a loan is free and easy to fill out.Full Answer >