For better or for worse
After getting married as well as the honeymoon, newlywed couples excitement may die down because of the question “how to refinance marriage”.
There are some couples who already own a house during their single life, when one gets married and does not have a house, he or she must share with the responsibilities. There are three options newly wed couples must consider.
It is possible to:
Casually contribute to the payment of the mortgage.
You can add a name to the title and contribute in paying for the mortgage.
It would be best to refinance the house in both names as well as to change the name of the title to co-ownership.
The time you say yes to split the payment casually, there are things you need to be aware of especially with the consequences legally.
The law states that the person listed as the owner of a particular property has the rights of ownership, as the other has none.
The legal owner has all the rights to put the house for sale and can get a second mortgage without asking someone else’s permission. The equity that was made through out the months that one has shared the payment will legally own by the title owner.
When a couple split up, the one who contributed without legally transferring his or her name on the title will get nothing even though he or she paid for the mortgage.
Scenario of the Sidekick
You can also add a person to the property title, and share the ownership rights of the home. The disadvantage of this is that both are legal owners, but only one person has the legal responsibility of the mortgage payment.
It is very possible for one person to avoid the expenses and don’t have to worry about consequences.
And, in the event of divorce, the original owner of the home have to ask the permission of the ex’s before selling it.
Handling it together
The best choice is to refinance the mortgage and make it jointly held. The title should be changed to co-ownership. The debt responsibility is now equally shared as well as the home equity as time goes by.The both of you can also get debt consolidation advice together.
The changing of the title is part or the process of mortgage refinancing. The only disadvantage of that there would be a new closing costs.
There are times that how to refinance marriage is not the best way to go, it would be advisable to consult with a lawyer first.
When your lawyer agrees to it, then that is the time to find a good lender with the best deal in town. This experience can surely make a couple more closer with each other.