Name not on mortgage

[honey987]

So Dh and I are going to refinance. Dh now makes enough that I don't need to be on the mortgage and I will be a SAHM soon. My name is on the title/deed of the house, but what does MM think of me not being on the mortgage?

[bunch]

I am not on my mortgage, but I am on the deed. I am fine with that.

[Deleted]

I think that is no big deal. There are lots of MM reasons why one person would not be on the mortgage...lower credit score, high debt to income ratio (including SL), inadequate proof of self-income, etc.

[Deleted]

DH is not on the mortgate. He could not be when we applied. We CANNOT refi now. But he is on the deed and has been since day 1.

[honey987]

Sept 7, 2012 12:55:47 GMT -5 @msstarry said:

Sept 7, 2012 12:53:10 GMT -5 bunch said:

I am not on my mortgage, but I am on the deed. I am fine with that.

This is how we were at my old house. It worked for us. That way if anything big happened both of us didn't get our credit ruined.

this is our thought. We live in FL and are always worried about another big crash. We aren't planning on selling anytime soon and aren't underwater, but if our house were to drop 100K and we had to sell only DH's credit would be ruined. I guess I am just worried about how this will affect my credit.

[lurkergirl123]

My husband is not on our mortgage, but he is on the deed. It's no big deal to us at all.

[Deleted]

H is not on the mortgage and even though his name is not on the deed, we live in a community property state so it essentially is. As part of my refi-they will put it on there.

[mbcdefg]

Sept 7, 2012 12:53:10 GMT -5 bunch said:

I am not on my mortgage, but I am on the deed. I am fine with that.

Ditto. I was a PT contract worker when we bought our house.

[EmilieMadison]

Doesn't matter. A mortgage is the financial obligation, the deed shows ownership.

[cjeanette]

I am the only one on my mortgage. I bought the house before we were married. The deed is in the name of our trust.

[livinitup]

It means you hold title on the house but are not personally responsible to repay the mortgage. It's still a debt of the marriage, so if you divorce you still have to use joint marital funds to repay it. It my be a little tricky if he dies. Upon death, the mortgage holder would seek to repay the loan in full. You would need to pay it off in full (savings, life insurance) or refinance a new mortgage under new terms (and your credit score). - His mortgage terms would not be transfered to you. And it won't reflect on your credit - if your family makes consistent ontime payments, it will not improve your credit score, just his. And in turn, if he doesn't make payments, it will not drive down your credit score.

[dr.girlfriend]

That's what we have, except the reverse. My credit was better so we did the mortgage in my name alone, with both DH and I on the deed.

[honey987]

Sept 7, 2012 13:14:26 GMT -5 livinitup said:

It means you hold title on the house but are not personally responsible to repay the mortgage. It's still a debt of the marriage, so if you divorce you still have to use joint marital funds to repay it. It my be a little tricky if he dies. Upon death, the mortgage holder would seek to repay the loan in full. You would need to pay it off in full (savings, life insurance) or refinance a new mortgage under new terms (and your credit score). - His mortgage terms would not be transfered to you. And it won't reflect on your credit - if your family makes consistent ontime payments, it will not improve your credit score, just his. And in turn, if he doesn't make payments, it will not drive down your credit score.

I guess I am mainly worried about my credit score, which is really good right now, we don't miss payments, but we are still young and I don't have any other "credit" besides credit cards which we pay off in full each month. I have purchased 1 car and paid in cash, had no student loans or any type of loans on my credit. Dh has several student, personal, and car loans that have been paid off so his credit is slightly higher than mine. I have a GF who just left her husband and can't purchase a home because she has 0 credit. She has always paid cash for cars and her house was given to her ex from his family and he is keeping it. I just dont want to end up like that if something were to happen.

[Deleted]

That was an intentional decision we made--I make enough I could afford the house on my own, so if something happened to DH or we divorced, I could keep the house as is. I may not be able to afford the house if rates were 7%, etc. I think it is slightly underwater and probably will be for a few years, so if we're both on the loan and divorced, it could screw us both if rates go up.

DH could not come close to affording the house if we divorced. If I die I have plenty of insurance, he would pay the loan off and could live there if he wanted (or of course not if he preferred.)

[Deleted]

I'm not on either. We keep meaning to add my name to the deed by way of a quit claim adjustment (I think that's what it's called?) but we're the King and Queen of Procrastinationland. Does it really matter?

[lanyac]

I'm the only one on the mortgage, but both our names are on the deed. It might complicate things with a divorce, but sometimes one of you has better credit and can get a better loan.

[livinitup]

Sept 7, 2012 13:23:07 GMT -5 honey987 said:

Sept 7, 2012 13:14:26 GMT -5 livinitup said:

It means you hold title on the house but are not personally responsible to repay the mortgage. It's still a debt of the marriage, so if you divorce you still have to use joint marital funds to repay it. It my be a little tricky if he dies. Upon death, the mortgage holder would seek to repay the loan in full. You would need to pay it off in full (savings, life insurance) or refinance a new mortgage under new terms (and your credit score). - His mortgage terms would not be transfered to you. And it won't reflect on your credit - if your family makes consistent ontime payments, it will not improve your credit score, just his. And in turn, if he doesn't make payments, it will not drive down your credit score.

I guess I am mainly worried about my credit score, which is really good right now, we don't miss payments, but we are still young and I don't have any other "credit" besides credit cards which we pay off in full each month. I have purchased 1 car and paid in cash, had no student loans or any type of loans on my credit. Dh has several student, personal, and car loans that have been paid off so his credit is slightly higher than mine. I have a GF who just left her husband and can't purchase a home because she has 0 credit. She has always paid cash for cars and her house was given to her ex from his family and he is keeping it. I just dont want to end up like that if something were to happen.

MSN has some really good financial articles that speak to boosting your credit score and keeping it there. It sounds like you are doing some of that already, there might be more you can do. Why don't you want to be on the mortgage then?

[Deleted]

I'm on neither the mortgage nor the deed but I'm not worried. We want to move soonish and have negligible equity.

[jenni232323]

We just refi'd yesterday - we went from both of us on the mtg to just H because I've become part owner in a corporation as of Jan 1 and the underwriters considered that self employeed so wouldn't do it with me on there unless I was at that position for 2 years (even though I've worked at this company for over 7 years and it's been in business for almost 50 years!).
We're ok with it. I am on the deed and it's homestead for both of us.

[chessie]

DH's name is on it, we got the house way before we were married. Doesn't bother me, if you think about it, it protects me if we did ever have to walk away.

[Deleted]

When we bought our house, H had horrible credit. We couldn't get approved with him on mortgage, so he is not on it. No big deal.

[honey987]

Sept 8, 2012 6:46:35 GMT -5 jenni232323 said:

We just refi'd yesterday - we went from both of us on the mtg to just H because I've become part owner in a corporation as of Jan 1 and the underwriters considered that self employeed so wouldn't do it with me on there unless I was at that position for 2 years (even though I've worked at this company for over 7 years and it's been in business for almost 50 years!).
We're ok with it. I am on the deed and it's homestead for both of us.

This is us. I'm self employed now and I'm not even sure what I would need to do to become qualified for the refi. Our lender is checking into it.

[honey987]

Sept 7, 2012 16:07:42 GMT -5 livinitup said:

Sept 7, 2012 13:23:07 GMT -5 honey987 said:

I guess I am mainly worried about my credit score, which is really good right now, we don't miss payments, but we are still young and I don't have any other "credit" besides credit cards which we pay off in full each month. I have purchased 1 car and paid in cash, had no student loans or any type of loans on my credit. Dh has several student, personal, and car loans that have been paid off so his credit is slightly higher than mine. I have a GF who just left her husband and can't purchase a home because she has 0 credit. She has always paid cash for cars and her house was given to her ex from his family and he is keeping it. I just dont want to end up like that if something were to happen.

MSN has some really good financial articles that speak to boosting your credit score and keeping it there. It sounds like you are doing some of that already, there might be more you can do. Why don't you want to be on the mortgage then?

I do want to be on it, but our lender suggested they leave me off since we don't need my income. I'm also self employed and don't make a lot, so I'm not bringing much extra to the table. I'm just trying to weigh my options. I am already on the deed from when we purchased and that will not change.

[jenni232323]

Sept 8, 2012 7:35:49 GMT -5 honey987 said:

Sept 8, 2012 6:46:35 GMT -5 jenni232323 said:

We just refi'd yesterday - we went from both of us on the mtg to just H because I've become part owner in a corporation as of Jan 1 and the underwriters considered that self employeed so wouldn't do it with me on there unless I was at that position for 2 years (even though I've worked at this company for over 7 years and it's been in business for almost 50 years!).
We're ok with it. I am on the deed and it's homestead for both of us.

This is us. I'm self employed now and I'm not even sure what I would need to do to become qualified for the refi. Our lender is checking into it.

We refi'd under HARP, so maybe the circumstances are different but they said if I had been part owner for over 2 years it would have been ok. Since I just became part owner (but still working for the same company) as of Jan 1, it's only been 9 months now as what they consider "self employed" (I own 33% of the corporation).
We didn't fight it, we're saving a lot by refinancing - 6.45% interest only to 3.99% P&I with a LOWER monthly payment.

[minzy]

I can't tell from your post the timeline between the refi and the staying at home, but you probably wouldn't want to be on a mortgage if you have no income (and they might not let you anyway). It sounds like with the on time credit card payments and good credit score, you are not like your friend with no credit at all. In your shoes, I would keep the credit card payments going in my name.

Of course it's nice to have a good credit score and it can be helpful for prospective employment, but since you're about to exit the workforce, you have at least in the past purchased a car out right, you seem pretty committed to the house if you're refinancing (and I'm guessing you feel solid in your marriage), what do you really need credit for in the near future anyway?

[honey987]

Sept 8, 2012 12:27:56 GMT -5 minzy said:

I can't tell from your post the timeline between the refi and the staying at home, but you probably wouldn't want to be on a mortgage if you have no income (and they might not let you anyway). It sounds like with the on time credit card payments and good credit score, you are not like your friend with no credit at all. In your shoes, I would keep the credit card payments going in my name.

Of course it's nice to have a good credit score and it can be helpful for prospective employment, but since you're about to exit the workforce, you have at least in the past purchased a car out right, you seem pretty committed to the house if you're refinancing (and I'm guessing you feel solid in your marriage), what do you really need credit for in the near future anyway?

I guess I'm just conditioned to do what is best for my credit always. We have been in the house for 3.5 years and are planning on refi to a 15 yr mortgage. It is likely we will be here for at least another 5 years if not more. I doubt we will stay for the full 15 years to pay off the mortgage, but its always a possibility. Since I have been contributing and will continue to contribute in the future, I would like my credit to reflect that. While I will be exiting the workforce when we have kids, it will likely only be for a year or so and even then, I might work part time if possible.

I have also been on the mortgage for the past 3 years so when we do refi and I'm dropped, how does that affect my credit?