My husband wants to re-fi our home just under his name. Currently the mortgage is under both our names. Can he do that? Will my name be removed from the title?
Thank you for your question today.
To answer your question about refinancing in your husband's name only: Your husband may refinance under his name alone. In order to accomplish this transaction, he will need to qualify based on his income and credit alone. Your income and credit will not be figured into the equation. Therefore, it is important to run some numbers before proceeding with this transaction.
The best way to determine if your husband will qualify based on his income alone, first write down your total current housing expense (house payment, property tax and insurance), then add all monthly payments that show up on his credit report (credit card payments, car payments, etc...). At this point, divide this number by his total monthly gross income. As long as the percentage is below 40%, you are in good shape.
His credit score will need to be in the high 600s to low 700s to receive an approval. In order to receive the best rate and fees, his credit score will need to be above 720. Credit requirements have risen in the recent months and seem to be rising with each passing month. It is important to keep your credit score during these times when loans are more difficult to qualify for.
As for your title question...you are allowed to remain on title even though you will not be on the loan papers. You will be required to sign 5 to 7 documents at your final signing appointment. In the past, many lenders required all parties on title to be on the loan documents. Today, that is not the case. Please be sure to indicate your desire to stay on title to your loan officer at the beginning of your loan application. This will ensure for a smooth transaction and avoid any difficulties if your lender has different title requirements.