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Question DetailsAsked on 2/27/2012

My father recently passed, and I want the house. I think what I want is to assume the loan, and then do an equity loan for my mom.

The family business runs from the address, which is regaining profitability after these unfortunate times. The mortgage is about half paid off, and payments have been on time for over a year, so no forclosure.
I really want to keep the property, as I've done many upgrades and repairs on it. Also the location is wonderful. My kids school is three blocks away, and I know every neighbor on the street. Most mortgages around it are double, and property with the same mortgage are little townhomes that I don't like.

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2 Answers

0
Votes

If you mother is still living, in most cases the house is hers, subject to the mortagage. Assuming your mother and father were married. You could just continue to pay the existing mortagage, which is best as a new one will incur costs. Your mother can agree to deed the house to you if she wants when it is paid off.

The disadvantage is that she gets the mortagage interest deductions though.

Would your mother agree to just leaving the current mortgage in place? Or is she wanting to get her equity out of it and move?

Answered 7 years ago by DaveAdams

0
Votes

Sorry for your loss. You can "buy" the home from your mother for one lump sum, paying off the existing mortgage and getting the equity for your mother at the same time all rolled in to one loan. The title company will pay off the loan at closing and cut a check to your mother for the rest. You will have to pay closing costs but should get a much cheaper interest rate on the new loan than the current rate and the equity loan you are considering. If you have good credit you can get a loan under 5% for 30 years fixed. Consult with a local mortgage broker and weigh your options carefully. You may have a tough time if your only source of income is a business which has only recently become profitable again. Since you are staying put and have no intention to ever sell by the sound of it do not agree to any type of balloon or adjustable rate mortgage. Best of luck.

Todd Shell
Todd's Home Services

Answered 7 years ago by Todd's Home Services




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