Asked in Home Equity and RefinancingEndangered, Vulnerable, and Threatened SpeciesProperty LawDefinitions
How can my not legally separated husband and I purchase another home for him to live in and refinance our current home that I live in so that it benefits both of us?
September 04, 2007 5:49PM
First, owning two single family properties instead of one will not benefit either of you. That being said, I assume that you wish to pull equity out of your primary residence and use it as a down payment on the second. Refinance the first house with a cash out option. Your mortgage payments will increase as a result of the larger mortgage balance outstanding. Next take that cash plus savings and put down 1/3 on the new house. Take out a traditional mortgage for the second house.
Above all, have a signed agreement between the two of you regarding the disposal of either house should one person die or wish to sell.
My best advice is to save the marriage.