|
Posted by holy on January 27, 2006, 3:46 pm
Please log in for more thread options
Hi,
I am planning to take out a mortgage loan. I alone qualify for the loan
based upon my salary, credit etc. and will not get a better rate if
took the loan jointly with my wife.
What are the disadvantages of individual vs. a joint loan? What is
recommended?
Any feedback will be appreciated.
Thanks,
holy
|
|
Posted by Jeff Strickland on January 28, 2006, 8:44 pm
Please log in for more thread options
If you and your wife are buying or refinancing, and you qualify on your own
income, then it doesn't matter from a financial persective. The problem you
need to consider is that your spouse should be on Title when the loan is
complete, and many lenders don't want to put people on title that are not
also on the loan.
This is a speed bump, not a brick wall.
You can go through the entire loan and not give income numbers for your
spouse. She'll then be included on the Title, but her credit rating will be
considered. If her credit is okay, then this won't be a problem. If her
credit sucks, then you won't want to do this.
The reason you want your spouse on title is that this means you are listed
as Joint Tenants. In joint tenancy, if one of you should die, the other
becomes the Sole Survivor, and they get full possession of the property
without having to deal with a will and probate court. In joint tenancy, both
tenants are equal owners in possession and equity. If one passes before the
other, all equity and possession automatically flows the surviving tenant.
This is why divorces can get ugly -- why would one joint tenant want to walk
away from the equity?
> Hi,
>
> I am planning to take out a mortgage loan. I alone qualify for the loan
> based upon my salary, credit etc. and will not get a better rate if
> took the loan jointly with my wife.
>
> What are the disadvantages of individual vs. a joint loan? What is
> recommended?
>
> Any feedback will be appreciated.
>
> Thanks,
> holy
>
|
|
Posted by Mstr Jack on February 3, 2006, 1:33 pm
Please log in for more thread options Hi holy,
You asked two questions. For the first, the only real advantage to an
individual loan would be if your wife's credit is significantly worse than
yours. (You said it wouldn't help, but not how her score relates to yours)
Her much lower score could mean a higher rate for the mortgage. On the
other hand, if she has very little credit, (only a few accounts, but they
are all in good standing,) then adding her to the loan completely by having
a joint credit report pulled and having her apply with you, would help
insure that she gets that account listed on her credit reports, and it will
eventually improve her score. But the mortgage may show up on her credit
anyway, because of the following.
If this mortgage is on your primary residence (the one you claim homestaed
exemption on), or your wife is listed on the title, then she'll have to go
to closing with you and sign for the note and mortgage anyway. In Florida,
your primary residence is considered to be owned jointly by a husband and
wife, and it doesn't matter if only one or both are listed on the title.
So, in essence, you would be getting a joint loan no matter what you do.
Your only choice is whether or not her credit is considered when applying
for the mortgage.
Jack
Star Mortgage, Inc. - Licensed Mortgage Brokerage
813.882.8878 fax - 813.243.8484
www.starmortgagebroker.com
> Hi,
>
> I am planning to take out a mortgage loan. I alone qualify for the loan
> based upon my salary, credit etc. and will not get a better rate if
> took the loan jointly with my wife.
>
> What are the disadvantages of individual vs. a joint loan? What is
> recommended?
>
> Any feedback will be appreciated.
>
> Thanks,
> holy
>
|
| Similar Threads | Posted | | OT but Important: Usenet Abuse and Impersonation by a sick individual using IP address 233.240.154.186 | September 7, 2007, 4:48 pm |
| need a loan | September 17, 2005, 8:36 pm |
| I getting an loan OT? | March 8, 2007, 7:27 pm |
| Interest only loan | June 16, 2007, 8:49 am |
| What is a FROG Loan? | June 17, 2007, 7:33 am |
| Looking for a new home loan or a refinance? | October 11, 2007, 11:18 pm |
| Looking for a new home loan or a refinance? | October 11, 2007, 11:18 pm |
| Looking for a new home loan or a refinance? | October 11, 2007, 11:19 pm |
| Looking for a new home loan or a refinance? | October 11, 2007, 11:19 pm |
| Looking for a new home loan or a refinance? | October 12, 2007, 1:03 am |
|
XML Sitemap