Joint Title, but Single Mortgage Possible issues

[The Wrong Questionnaire]

The Scenario:

The property is a single family home in Tennessee. The application is a refinance. The joint-owners are husband and wife and this is their primary residence. The bank will give the husband a lower rate if the mortgage is in joint name. For equity's sake, the husband wants the title in joint name.

The Questions:

1) How can a this Joint Ownership, but Single Mortgage scenario end poorly?

 

[PayrollHRGuy]

Happens all the time.

 

[quincy]

The Scenario:

The property is a single family home in Tennessee. The application is a refinance. The joint-owners are husband and wife and this is their primary residence. The bank will give the husband a lower rate if the mortgage is in joint name. For equity's sake, the husband wants the title in joint name.

The Questions:

1) How can a this Joint Ownership, but Single Mortgage scenario end poorly?

In the event of a divorce, the one who is named on the mortgage could find him/herself responsible for paying a mortgage on a house awarded in divorce to the other person. The lender prefers to have both parties on the loan so both can be held responsible for the payments.