i own a home with my brother & i am getting married and i want to buy him out and have some funds to do home?
by Mortgage Rates on Sunday, November 7th, 2010 | 3 Comments
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Is there equity in the property? If tere is, just have him sign a quit claim, that can be arranged with the title company, and do a refi into your name alone. (Assuming you qualify) You can do cash out at the time if there is equity and you can pay him his share and use the rest for improvements. That would be the easiest way to proceed.
I think this might be the worst time to refinance. Its not a great time for real estate. If you can get a great interest rate on a refi I would do it. But housing prices have dropped so unless you have equity its going to be harder.
In order to remove your brother from the financing you must refinance. You don’t need to take an equity loan to get “cash out” for your improvements. Depending on how much the house is worth compared to what you owe on the house (called LTV, loan to Value) you can take cash out all at the same time. As a general rule, (wihout having your personal information) a client can take out up to 95% of the value of the home. I can’t answer what rate you might qualify for because I don’t have any specific information about you.