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Refinance vs assumption loan

In my divorce papers it states my Ex needs to refinance the mortgage but now he is trying to do an assuption loan. Everything i have read hasn't been good about an assumption loan. I don't want to have to jump through hoops when i go to get a mortgage of my own. I don't want to have to explain anything about the house. The mortgage company keeps telling me this is just like a refinance loan but cheaper. Can you please tell me if that is true? Will this still keep me on the house? Will this property still show as mine on my credit? by Angie1653840 from Secaucus, New Jersey. Dec 7th 2015 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

I'm assuming your referring to an FHA loan, and if that is the case, then the mortgage company is correct.. when your husband assumes your existing loan, then it is cheaper for him to do it this way.. he only need to pay for an assumption fee and maybe an appraisal fee, but if he did a full up refi, then there are much more closing costs involved.. if the loan is assumed, then so long as the lender signs and submits From HUD-92210-1 (Approval of Purchaser and Release of Seller), then you would no longer be liable for this loan, and it would no longer show on your report, and you would be removed from the deed. If your talking about a VA or USDA loan, then these types of loans are assumable, but there are additional issues that need to be addressed. (entitlement, partial entitlement transfers, etc..) All the bad news you are reading about assumptions has to do with illegal assumptions or possibly no-qualifying assumptions (which stopped being issued since 1988).. and yes.. there were many.. but now, ALL government loans are assumable "WITH QUALIFYING"... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Dec 7th 2015
Ted Ark (
#31 ranked lender in New Jersey - 37 contributions

To protect yourself, you will probably want to read or have your attorney review the mortgage note on your existing property to determine 1) if your loan can be assumed by your ex-husband or another individual 2) your legal responsibility upon assumption of the loan ie. are you taken off the mortgage and the deed at refinance/ assumption.Note: comments should not be construed as legal advice.Regards,Ted ArkGolden Mortgage818 Rt 202-206Bridgewater, NJ 08807Tel: 908-722-9217

Dec 7th 2015
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