Summary
Transferring a mortgage and swapping houses involves consulting your mortgage lender for approval, drawing up a deed transfer with a real estate attorney, ensuring title insurance, and recording the deed. If the fair market value of the new house is higher than your mortgage, you may incur a gift tax. Increasing your mortgage to match the new houses value is possible but subject to lender approval and may affect interest rates and payments. Consult a tax advisor and mortgage advisor for personalized advice. Contact your lender or find certified mortgage advisors online or through local financial institutions.Full Conversation
My father offered to swap houses with me and my family after my mother passed away. His house is paid for and mine is not. His house is larger with acreage and mine is in a subdivision. How do I transfer my mortgage to his property and him assume ownership of my home without creating a mortgage for him and trying to keep my existing rates.
Hello ****! It's a complex process, but it's possible. Here are some general steps you might want to consider:
*. Consult with your mortgage lender: Your lender will need to approve this, especially if you want to preserve the existing interest rate.
*. Draw up a deed transfer: This is best done with a real estate attorney to ensure everything is legally sound.
*. Ensure title insurance: This is to protect against any potential problems with the property's title.
*. Record the deed: This is done at the county recorder's office.
Note: Everyone's situation is unique and these steps may not apply to your specific situation. It's best to consult with a local real estate attorney.
What if his house fair market value is greater than my mortgage amount?
If the fair market value of his house is higher than your mortgage amount, you could potentially incur a gift tax. This is because the difference in value may be considered a gift. It's crucial to consult a tax advisor or attorney to understand the potential tax implications in your particular situation.
Is it unheard of or far fetched for the lender to be willing to increase my mortgage to the fair market value of his home to avoid the gift tax, assuming that I am qualified for the higher mortgage amount.
Increasing your mortgage to match the fair market value of the home is not unheard of, but it's subject to the lender's approval. However, it's crucial to understand that this may also affect the interest rates and your monthly payments. Consult a mortgage advisor for guidance.
Understood thanks for your help, where do I find a mortgage advisor? Would it be best to contact my lender for that?
Yes, contacting your lender would be a good starting point as they often have mortgage advisors. You can also find independent mortgage advisors online or through local financial institutions. Always ensure they're certified before proceeding.
Thanks again.
You're welcome, ****! If you have any more questions in the future, don't hesitate to reach out. Good luck with everything.
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