Want to add girlfriend to my mortgage?

Question

I bought a place 2 years ago. The mortgage is in my name. My new gf moved in about 6 months ago. I have been charging hey with rent. Now, she wants to match my cashdown and become half-owner of the place. What steps do I need to do to protect both our interests?

Answer 1

You need to have a formal contract, specifying the terms.. i.e., she matches your down payment, pays half of the monthly payments, pays half of insurance and taxes. In exchange, her name is added to the title. Note that the lender would still hold the deed of trust.

The problem is that the contract is not binding on the mortgage company. If you and your GF split up, and she flakes out on you, YOU, as the original borrower, are still solely and completely obligated to pay the loan. The mortgage company won't care two cents about your agreement with your girlfriend. In general, I think it is a bad financial move for you. What exactly are you gaining?

A better plan is to have your GF pay you half of the equity (value minus the mortgage), and then refinance, paying off the mortgage, and having both of your names on the new loan, as well as on the title.

Answer 2

What an unusually ethical person you sound! If she is paying towards the mortgage then she should have a share. Not fair if she pays for something only you would own. If she is in your bed she is not a lodger. If she is added to the mortgage (your provider will have to do the usual checks to agree) she will also have to be added to the deeds. If you agree that she shouldn't have a full 50% share, you can be made 'tenants in common', which gives percentage shares. The amount of these is up to you both - 60/40, 70/30 etc. Then if you split this is the share of any equity you would be entitled to.

Answer 3

Hello Boomer,

First of all, dont listen to the other responses..

Yes it could be risky, but you are obviously serious with this girl or you would not be even considering doing this transaction..

its actually a very simple process.. All you need to do is refinance the mortgage with your and your girlfriend, and add her to title during the transaction..

If you have been in th ehouse for 2 years, you should have some equity built up, and should be able to qualify for a mortgage refinance easily.. You will also mos tlikely be able to ge ta lower rate being you are adding your girlfriend which will show additional household income...

Your best bet is to work with a company that can cut out any middlemen in the process...

Wha ti mean by that is most mortgage brokerages, or banks have to overcharge you on your rate and fees to make a profit from your loan.. This is because they arent lending you the money, they are selling your loans on the secondary market on behalf of another bank..

My company as a wholesale mortgage lender can lend the money directly to you.. Bein gwe are wholesale we offer the lowest possibel rates on the market as well.. Banks and brokerages have to charge you points to buy your rate down to wholesale level.. We are already at the wholesale level..

Feel free to call or email me directly at anytime.. I would be happy to go over your options so you can make a more informed decision about which route to take,..

Thanks,

Jason Fry
Licensed Loan officer
Treehosue Lending
312-239-7126
[e-mail]

Answer 4

Some advice: Just keep playing house like you are. Let her purchase her own real estate. The value of your home has risen in 2 years. She has not paid you for:the down payment, bank loan fees, title fees, surveys, 2 years of Mortgage, interest, insurance, taxes, upkeep, lawn care, water, sewer, telephone, H.O.A. fee (if any) etc. etc., Hey I will take that deal anytime, just keep playing house !

Answer 5

Oh ...have to tell you .. bad move! I did that and am now paying dearly. Best thing is to go to a good lawyer and make sure everything is proper and in writing. I am now in a situation where i am having to sell to the "partner" just to get out of the situation. Both of you just be very very sure you want to do this. BTW...my relationship was 10 yrs when this happened. People change.

Answer 6

Be VERY careful with this one. Talk to a real estate agent licensed in YOUR state, or a lawyer. There are a lot of ways to get burned on this one even though I see where you're coming from. I'd wait till I got married if I were you but good luck!

Answer 7

Not sure what the law is where you live, but you could own the house as Tenants in common or joint tenants.
All tenants in common share equal property rights except that, upon the death of a tenant in common, that share does not go to the surviving tenants but is transferred to the estate of the deceased tenant. Unity of possession but distinct titles.
When two or more persons are equally owners of some property. The unique aspect of joint tenancy is that as the joint tenancy owners die, their shares accrue to the surviving owner(s) so that, eventually, the entire share is held by one person. A valid joint tenancy is said to require the "four unities": unity of interest (each joint tenant must have an equal interest including equality of duration and extent), unity of title (the interests must arise from the same document), unity of possession (each joint tenant must have an equal right to occupy the entire property) and unity of time: the interests of the joint tenants must arise at the same.
A way two or more people can own property together. Each can leave his or her interest upon death to beneficiaries of his choosing instead of to the other owners, as is required with joint tenancy. In some states, two people are presumed to own property as tenants in common unless they've agreed otherwise in writing.
Hire a lawyer so you both are aware of your rights. That's great that you and girlfriend are going to share property.

Answer 8

that's a bad idea waiting to happen. why not you pay the house and she pays the bills?

if you REALLY wanted to do this, then you need to first come up with a contract of what to do when it doesnt work out so you dont get burned. you might want to consider to refinancing the house.

you have been paying for 2 years, dont give up that cut of your money just cause she wants to start paying now for the house.

Answer 9

Why would you want to do that? It was yours to begin with, it needs to stay yours. You don't have to have her there to afford it, if you bought it without her. Keep it only in your name!! Wait till you get married and committ to the relationship before you do anything like that!