Quit Claim Deed

[junemartin]

My state is California

A close friend of mine helped me to refinance my mortgage (I needed more income to show as I recently entered into a career in Social Work which doesn't pay well!). My friend would like to get his name off the title/loan with a quit claim deed. I've heard this will not get his name off the loan! Is this true??? Is there something else we can do besides refinance since I won't be able to do that on my own because of my income?

 

[MortgageGuru]

Refinancing would be the only way to get him off the loan. Why didn't you do a stated income loan the first time?

 

[junemartin]

That was suggested, but it would have made the interest rate go from 5.3% to 7.75%!! Seemed like a large jump to me. Actually, the house is in Portland, Oregon. I live in California but will be moving up there in about a year. For now, I rent the house out until I can move, so that affected the interest rate as well, making it a bit higher.

Thank you for the information. Sorry to hear my friend can't get off the loan with the quit claim deed. I guess I'll have to go for the stated income loan and pay the higher percentage rate.

 

[Ciarraine]

That was suggested, but it would have made the interest rate go from 5.3% to 7.75%!! Seemed like a large jump to me. Actually, the house is in Portland, Oregon. I live in California but will be moving up there in about a year. For now, I rent the house out until I can move, so that affected the interest rate as well, making it a bit higher.

Thank you for the information. Sorry to hear my friend can't get off the loan with the quit claim deed. I guess I'll have to go for the stated income loan and pay the higher percentage rate.

Shop it. Stated income generally adds just 1/4 point to 1 point, depending on your credit,to the rate you'd otherwise get on a conventional loan.