Posted by Keith (AL) on October 31, 2000 at 13:27:45:
I don’t think so. If you refinance the loan you’re getting a NEW loan (new interest rate, closing costs, etc.). By assuming the loan you are assuming the EXISTING loan (same interest rate, no closing costs except lender assumption fee, same number of remaining payments, etc.). It is MUCH cheaper to assume the loan than to refinance the loan. Hope this helps.
Loan assumption…need help!!! - Posted by Keith
Posted by Keith on October 31, 2000 at 09:55:34:
Going through a divorce and I am keeping the house. She is requesting that I refinance to remove her name from the deed and note. My mortgage bank is saying that I dont have to refinance that they can remove her from the note by a loan assumption. Then my lawyer would draw up a new deed without her on it. Wouldnt all this be equal to the refinance?
Thanks,
Keith
Re: Loan assumption…need help!!! - Posted by dewCO
Posted by dewCO on October 31, 2000 at 22:54:14:
Absolutely go for the assumption it will be less costly (several hundred dollars vs. several thousands). However, if the current interest rates are 1% or more lower, and/or you want to take some cash out (if that is possible) then paying the costs for the refi might be the way to go.