Mortgage

With Or Without Refinancing, How To Remove A Name From A Mortgage

If your situation has changed, you might be wondering how to exit a joint mortgage. Perhaps you and your spouse or a friend agreed to a joint mortgage when times were better. Now that the relationship may be beyond saving, you need to end it. While it is not the easiest thing to do, you can get out of a joint mortgage if you do it correctly. Here are a few factors to think about if you want to get out of a joint mortgage.

Why did you have to take their name off the mortgage?

You and your ex-partner may come to an understanding regarding who will live in the home and pay the mortgage.
But until your spouse’s name or that of your co-borrower is removed from the mortgage and deed, you are both still responsible for paying back the loan, according to the lender.
Both parties continue to be “jointly and severally” liable for the loan in the eyes of the lenders. In other words, in the event of a default, the lender may pursue one of you or both of you. Additionally, if your payment is late, both of your credit scores will suffer.


Getting your ex’s name removed from the mortgage is the only legal way to take over a joint mortgage.
The same holds true for a co-borrower who no longer wants to put their financial future at risk by co-signing a mortgage. Here are your options if you discover that you need to take someone else’s name or your own name off a mortgage.

To remove your name from a mortgage, refinance

The best way to remove a person’s name from a mortgage is through refinancing. It can be your only option, depending on your lender.
You should be able to refinance your current mortgage in your name alone if you have enough equity, credit, and income and your ex-partner agrees to give you the house.
You must demonstrate to the lender that you have a solid enough credit history and sufficient monthly income to be able to make mortgage payments on your own in order to be approved for a refinance loan.

Is a refinance loan available to me?

In general, and depending on the loan program and the lender, refinancing a mortgage calls for

  • a fresh loan that is 80% or less of the value of the property
  • a minimum credit score of 620 (for conventional loans and VA loans) or 580
  • lower than 45% debt to income ratio
  • constant income and employment

Those final two conditions can be the most challenging. You might not have enough income on your own if you weren’t the primary provider for the family. Here’s a hint, though: Inform your lender if you will be receiving alimony or child support. With this income, you might be able to refinance without needing a family member to co-sign.

Accept a Buyout

You must agree on a buyout sum with your other co-borrowers if you need to exit a shared mortgage. You must break the contract, but you shouldn’t be forced to return the entire sum that you have put into the mortgage throughout the years. There are a few various approaches, but getting the house evaluated is the simplest. Subtract the loan balance from the appraised value. You should be entitled roughly that amount if you divide the result by the number of parties to the agreement. In order to receive all of the money that you have invested in the loan, the other party to the arrangement must come up with that sum of money.

Renaming the Document

As things stand, your names are both on the mortgage and the property’s title. You will also need to relinquish your ownership interests in the property if you want to be released from the loan’s financial obligations. You will need to complete a quitclaim deed in order to accomplish this fast and simply. You can complete this step with the help of a lawyer or at the neighborhood title firm. Any claims you may have to the property will be forfeited once you sign the contract. Any ownership interests you once had in the property have now been exchanged for the buyout sum.

Mortgage Refinancing

The existing mortgage will need to be refinanced as the subsequent step. As the other party is taking on the loan themselves, you won’t be directly involved in the refinancing. However, you must guarantee that they take this action. Your name is still listed on the mortgage if they do not come up with a new loan and keep the old one. This means that even though you give up your rights to the property, you are still financially responsible for it. Your credit will suffer just as much as the person who is still residing in the home if the other party stops making payments and the residence falls into default. In order to avoid any issues, make sure the other party to the joint mortgage refinances the loan in their sole name.

Inquiries about deleting your name from a mortgage

How can a joint mortgage be canceled?

By refinancing, you can pay off the joint mortgage and replace it with a new, solely-owned loan. Your own income and credit history will be used to determine your eligibility for the new loan. Selling the house is another option for paying off the joint mortgage. A co-borrower may be removed from the loan in some circumstances, and your loan servicer may agree to let you assume the loan in exchange for a fee, but this is much less frequent.

Is it possible to take my name off a mortgage?

You and your co-borrower can ask the lender for an assumption or modification that would remove your name from the loan in order to get rid of your name from a mortgage. Your co-borrower will have to refinance the house into a new mortgage if the lender won’t modify the current loan.

How much does it cost to change a mortgage’s name?

Yes. Closing costs, which typically range from 2% to 5% of the loan balance, are necessary when refinancing to remove a name. Typically, a loan assumption fee is equal to 1% of the loan balance plus processing costs. The cost of a loan modification will vary depending on your lender.

Is it possible to change the name on a mortgage without refinancing?

Without refinancing into a new loan, a loan modification or loan assumption may be used to release a co-borrower from your mortgage. Be prepared to bargain, though, as lenders are not obligated to accept assumptions or modifications.

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