Posted by Jeff H. CT on July 04, 2003 at 21:08:50:
Have yourself put on the exisiting loan and then refinance the loan. Many refinance packages will allow you to pay closing costs with the equity in the property. The $1000 to sign you on is all that you will need, and a rate like 64K @ 8.75% 30yrs = $504/mth.
Look what you save- 74K @ 5.5 % 30yrs = $420/mth
That is giving you $10,000 cash out of the deal and you save $84/mth.
This is only a suggestion but I think it would be much easier than applying for new financing. As long as your dad will sign the refinance papers or a power of attorney (for the property)- You should be golden.
Good Luck
Jeff H disser420@yahoo.com
My father has a 3BR rental house he would like to sell me which he has owned for the last 10 years(I would keep this house as a rental-I already own my house). Owes about 64K on it. It has an assumable mortgage(30 year) to a blood relative(me). However, it has an 8.75% rate and a 1000.00 charge for adding me to the mortgage. My question is should I assume the mortgage and refinance, or should I get my own loan at a lower rate? What are the pros/cons to these choices. Right now I am applying to purchase this-I dont know if I could qualify or not for buying a second home…I am assuming that I will. I just refinanced my own house about 6 months ago and have about 7000 saved from that.