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re: Can I get some advice on cosigning a mortgage refinance?
Posted on 9/7/16 at 10:03 am to CAD703X
Posted on 9/7/16 at 10:03 am to CAD703X
Oh yeah, with a rate up there something needs to be done ASAP.
Depending on how much rent the property commands and how critical cash flow is you could go with a 30 or 15 year. Some approximate numbers are as follows:
15 year at around 3% would be about $550/month
30 year at around 4% (you can likely do better) will put you under $400.
I never like the idea of consigning personally. If it were me, I'd rather just take the risk on and be in charge too. That's just my opinion and has nothing to do with your relationship, etc. I also like the idea of turning this into a joint investment for you both, but you'd have to seek out the legal/business structures from some others on here.
Good luck with whatever you do.
Depending on how much rent the property commands and how critical cash flow is you could go with a 30 or 15 year. Some approximate numbers are as follows:
15 year at around 3% would be about $550/month
30 year at around 4% (you can likely do better) will put you under $400.
I never like the idea of consigning personally. If it were me, I'd rather just take the risk on and be in charge too. That's just my opinion and has nothing to do with your relationship, etc. I also like the idea of turning this into a joint investment for you both, but you'd have to seek out the legal/business structures from some others on here.
Good luck with whatever you do.
0
Posted on 9/7/16 at 10:30 am to CAD703X
quote:
Grrr I just want to help a brother out.... Literally.
that's commendable. It really is.
Your brother may be a great person, but what if the tenant moves out and it takes 4 months to find a new one? What if the new one destroys the place.
If you are going to do this, you need to prepare yourself for the fact that you may well need to pay for this yourself.
If you can take that risk, and are willing to do so, and understand it... man go for it.
People on this thread are suggesting some other options that may result in the same thing - your brother having a home to move to when your dad passes on.
BTW, what is going to happen to your dad's house? Is there someone else like mom or wife to still live there?
Is it a possibility for him to sell house in SA now, keep the money in savings, then buy dad's house or another house when the time comes?
Posted on 9/7/16 at 11:02 am to LSUFanHouston
quote:
Is it a possibility for him to sell house in SA now, keep the money in savings, then buy dad's house or another house when the time comes?
This seems like the most logical solution.
Posted on 9/7/16 at 1:23 pm to The Spleen
Good on you for helping your brother out. Good on your brother for helping your parents out. Sounds like you all have a great relationship and you are well aware of the potential pitfalls that (worst case scenario) could occur. Go ahead and cosign the loan on a 30 yr note until you and your brother are able to tidy up all of your fathers affairs. Simple enough and good luck.
Posted on 9/7/16 at 1:24 pm to The Spleen
Good on you for helping your brother out. Good on your brother for helping your parents out. Sounds like you all have a great relationship and you are well aware of the potential pitfalls that (worst case scenario) could occur. Go ahead and cosign the loan on a 30 yr note until you and your brother are able to tidy up all of your fathers affairs. Simple enough and good luck.
Posted on 9/7/16 at 2:39 pm to CAD703X
quote:
He has no income and I can easily afford the mortgage so I was wondering if I could use only my financials to secure the loan?
What do I need to look out for?
who you put on the deed.
terms of will.
how your contributions will turn into equity.
consider these scenarios
say you put in $XXXK. YOU die. your heirs should not get to make him sell to make your heirs whole. they get their part when he dies or sells, not before.
what happens if you die, and he can't make payments. what recourse do your heirs have so he does not lose the house?
Posted on 9/8/16 at 6:36 am to CAD703X
80% of co signed loans fall back on the co signor, IF you can do this and consider it a gift without any remorse, hurt feelings etc then help but be prepared for this to not end well
Quitting the job to help dad is where you lost me. Why not work harder and hire help to stay with him
The worst deals are always family and friends.
Quitting the job to help dad is where you lost me. Why not work harder and hire help to stay with him
The worst deals are always family and friends.
Posted on 9/8/16 at 7:30 am to 756
quote:multiple strokes, but still strong as a damn horse but unable to do anything for himself. Mom is 86 and can't do it and they are both too proud and stubborn to put him in a nursing home. Tried that for a week and his health went down dramatically. Would have been dead within a month.
Quitting the job to help dad is where you lost me. Why not work harder and hire help to stay with him
They will use their last ounce of energy helping dad with not the slightest concern for their own well being.
Not asking for sympathy for the situation just letting you know why it's impossible for him to work and take care of him.
I live in another state and due to divorce decree I'm unable to move away from the ex even though I'm primary for the kids.
He was ok financially 3 years ago when he quit his job and I don't think he anticipated how long he'd be in this position but it is what it is.
Not a great situation so I'm just trying to do what I can.
This post was edited on 9/8/16 at 7:47 am
Posted on 9/8/16 at 9:32 am to CAD703X
The issue is this isn't your brothers primary residence anymore, it's a rental property and he's doing a poor job of managing it financially if he still has a 7% loan. This is a business, a business in which he has almost $150,000 in equity. It sounds like he won't be living there for another couple of years, and further more whatever you say I have a hard time believing that someone in IT that wants to work could not work for 10-20 hours a week from home. Add that work into the rental property and he would probably have enough income to refinance on his own.
Just because your brother can pay the mortgage does not mean he should own a rental property. What happens if the AC goes out or a $5000 roof repair or pipe burst? He won't be able to afford to fix those from what you said.
If you wouldn't normally buy into the business and the family member has their own way out, getting into a business with family because of emotions is always a very very bad idea.
Just because your brother can pay the mortgage does not mean he should own a rental property. What happens if the AC goes out or a $5000 roof repair or pipe burst? He won't be able to afford to fix those from what you said.
If you wouldn't normally buy into the business and the family member has their own way out, getting into a business with family because of emotions is always a very very bad idea.
This post was edited on 9/8/16 at 9:33 am
Posted on 9/8/16 at 12:13 pm to CAD703X
what you are trying to do is the hardest type of loan possible. The only program that allows for an unoccupied co-borrower is FHA. Also if our brother claimed the rental income on his tax returns then the property is an investment property and cannot have a co-signer on a conventional loan. I hate to say it but your brother is probably stuck with that mortgage until he returns to work.
Posted on 9/8/16 at 1:22 pm to hawkeye007
quote:
what you are trying to do is the hardest type of loan possible. The only program that allows for an unoccupied co-borrower is FHA. Also if our brother claimed the rental income on his tax returns then the property is an investment property and cannot have a co-signer on a conventional loan. I hate to say it but your brother is probably stuck with that mortgage until he returns to work.
Unless CAD buys the place for say, $100k. This leaves plenty of cushion (approx. $20k) for emergecy rental repairs. That was my original thought
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