What is the process of buying out of a mortgage?

One Response to “What is the process of buying out of a mortgage?”

1. Carol says:

   December 2, 2010 at 1:09 am

   Yes, the process will be essentially the same as when you purchased the home. Only the closing costs will be lower. You need a lender to give you a new loan. So, just like when you got the 1st loan, the new lender wants to be absolutely certain that whichever of you remains on the new loan, that person can qualify to make that payment.

   There are closing costs again because there is a new loan being done and these costs will come up again – new title insurance, recording fees, prepaid interest, escrows, commitment fees, appraisal fee, closing fee, etc. Can’t be avoided. You might be able to find a lender who will do a “no cost” loan, but in that case, you would get a higher rate instead of paying some of the fees.

   There is no easy way out when it comes to mortgages – especially these days.

   I notice you said you don’t know of either of you can afford the mortgage on your own. You should answer that question in your mind before even applying for a loan and certainly before adding additional amounts onto your loan for the closing costs.

   Good luck.

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