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I didn't know about loan assumption even though I've research and google plenty so I thought I would just share my experience.
I recently divorced and bought out my ex interest in our home. He signed over the quit claim deed but I still have to get his name off the mortgage. I researched, googled, talked to friends and seemed like my only option is to refinance. I really didn't want to as my mortgage is at 3.5 and current refi is at about 4.2. But I knew I had to bite the bullet and do it. I was reading through the final mortgage application, I see a "transferable clause' where the mortgage is transferrable in the event of a 'sale', that got me asking my current mortgage company if they offer that service. After I explained my divorce, they transferred me to their Loan restructuring dept where I was told about loan assumption. Since my name is already on the mortgage jointly with my ex, I am eligible to assume the mortgage. I have to do an application and go through normal credit review process and pay a $900 fee. But that still worked out to be much cheaper than a refinance.
I was approved and everything is filed. I just want to share this as I don't think this is a widely known option.
I recently divorced and bought out my ex interest in our home. He signed over the quit claim deed but I still have to get his name off the mortgage. I researched, googled, talked to friends and seemed like my only option is to refinance. I really didn't want to as my mortgage is at 3.5 and current refi is at about 4.2. But I knew I had to bite the bullet and do it. I was reading through the final mortgage application, I see a "transferable clause' where the mortgage is transferrable in the event of a 'sale', that got me asking my current mortgage company if they offer that service. After I explained my divorce, they transferred me to their Loan restructuring dept where I was told about loan assumption. Since my name is already on the mortgage jointly with my ex, I am eligible to assume the mortgage. I have to do an application and go through normal credit review process and pay a $900 fee. But that still worked out to be much cheaper than a refinance.
I was approved and everything is filed. I just want to share this as I don't think this is a widely known option.
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