How to Remove a Name From a Mortgage in Wisconsin
Two people with solid employment and good credit have a better chance at qualifying for a mortgage than one person alone. Life happens, though, and sometimes you find yourself needing to remove a name from a mortgage. Trouble is, a divorce or other separation doesn't automatically change your mortgage. You must refinance your home if you want a new mortgage loan with only one name on it. Luckily, Wisconsin offers low interest rates and you may be able to get a better deal if you refinance.
Other People Are Reading
Instructions
-
-
1
Ask your current lender if she would be willing to remove one person's name from the mortgage. Proving that the person remaining on the mortgage would easily be able to handle the payments may convince the lender to recreate the mortgage with a single name on it. Show evidence of a separation, like divorce papers, to explain why you want to change the mortgage.
-
2
Read your original loan documents and determine whether the loan is assumable. If it is, the person who wants to keep the mortgage in his name can assume the loan with its current terms by applying for the assumption through the lender.
-
-
3
Contact your current mortgage lender if you're happy with the terms and your rate. Explain your situation and that you want to refinance the loan only in your name. Find out what kind of interest rate you can be offered.
-
4
Contact other banks and local lenders. Provide them with your financial information and ask what interest rates they can offer you.
-
5
Ask for an estimate of closing costs. Generally, they will be between two and seven percent of the total value of the loan and you will have to pay them up front.
-
6
Ask the other person on the mortgage to indicate his willingness to have the mortgage taken out of his name to the current lender.
-
7
Select an offer. Tell your existing mortgage company about it if it isn't through them. Sign the new documents and get your new mortgage paperwork. Pay the closing costs.
-
1
Tips & Warnings
If the loan on your home is still sizable, you must be offered a fixed rate mortgage under Wisconsin law. This means that as interest rates increase when the economy improves, your rate will not rise.
