Having multiple names on your mortgage loan has its advantages. It likely enabled you to qualify for financing and thereby buy the home more easily, and it may lower your risk if you run into future repayment problems.
But what if you need one or more names removed? Can you take someone off a mortgage?
Fortunately, there are options you can pursue here, including refinancing, mortgage assumption, loan modification, and selling the home. Read on to learn how to remove someone from a mortgage, the steps involved, the benefits and drawbacks of doing so, the cost of removing someone from a mortgage, and more.
Why remove someone from a mortgage?
When you take out a mortgage loan, all parties involved have to sign several required documents. If your name is listed on both the mortgage loan and the property title, you are legally considered a co-borrower: That means you share both ownership rights and responsibility to make mortgage payments with any other co-borrowers who are also on the loan and title.
If a name appears only on the loan documents but not on the title, that person is considered a cosigner, which means they agree to repay the debt but have no ownership of the property.
It’s possible to make it a solo loan and have that other person – whether they are a co-borrower or co-signer – removedfrom your loan, for which you will remain as the primary borrower. And there are several common reasons why many people choose this route, including:
- Divorce or breakup. If you are splitting with a romantic partner, you may no longer want to share financialresponsibility.
- Selling your share. The other person wants to relinquish their interest in the property.
- Moving out. You decide to keep and remain in the house, but the other person will depart.
- Refinancing. You desire better loan terms or interest rates under a single person’s name.
- Financial protection. You don’t want to be on the hook if the other party stops paying their fair share of the mortgage.
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Divorce is the most frequently reason for changing a mortgage
“The most frequent reasons are divorce or separation, winding up an estate, or dissolving a business partnership,” explains Dennis Shirshikov, a professor of finance and economics at City University of New York/Queens College. “Sometimes a borrower may want their name cleared so they can apply for another loan, as their debt-to-income ratio will be improved by doing so. Other times, removing a name is simply about streamlining ownership when there is no longer a financial or personal connection between the person cut from the title and the property.”
Jay Yu, an estate planning attorney, agrees, noting that the reason given is often to avoid joint responsibility for late payments or foreclosure risk.
“Removing someone from a mortgage will release that person from liability and give the remaining owner full control of the property,” he says.
Pros and cons of removing someone from a mortgage
There are pluses and minuses to taking a name off a mortgage loan. Among the advantages, it:
- Protect your credit if you no longer occupy the home
- Simplifies ownership, particularly after divorce/separation
- Eliminates financial and legal responsibility
- Makes it easier for the remaining person to manage the home and mortgage loan.
On the downside, this move can:
- Trigger closing expenses or fees from your lender
- Negatively impact trust and relationships if not handled properly
- Make it harder to qualify for refinancing the mortgage by yourself
- Negatively affect your home equity.
“The primary advantage to the party being removed is that they are no longer legally obligated to repay the funds to the lender. It can also make the property ownership easier and reduce problems in divorce or estate proceedings,” adds Shirshikov.
“However, the borrower who remains on the loan must be eligible for the mortgage on their own, and that may be difficult if they have a low income or poor credit. You may also have to pay costs, such as refinancing fees. And sometimes the new loan terms are not nearly as favorable as the old ones.”
Pros and cons of removing someone from a mortgage by refinancing
The most common and often easiest way to get a name off the mortgage is by refinancing.
“This approach is effective, but you will need to qualify by yourself based on income, credit, and debt. The upside is that it gives a fresh start and full responsibility to one borrower. But there are closing expenses involved, which can be costly,” notes Matt Vukovich, a personal finance expert and real estate investor.
Note that refinancing requires the approval of your existing lender.
“Also, while refinancing provides a clear legal and financial separation, it can involve several weeks of processing and possibly an appraisal,” cautions Yu.
Alex Capozzolo, a Realtor with Brotherly Love Real Estate, points to other refinancing perks.
“Ideally, you can get a lower interest rate than your current rate. You can also pursue a cash-out refinance and liquidate equity if needed,” he says. “But if the need to refinance is urgent, you may end up paying a higher interest rate if rates are on the upswing. Refinancing could also extend your loan term, costing you more in the long run.”
Removing someone from a mortgage by refinancing
The process of refinancing, or how to remove a name from home documents, involves applying for a new loan in your own name, paying off your existing mortgage, and ensuring the other party is no longer legally responsible.
Your home will likely need to be appraised, and you’ll need to close on the loan as you did the first time around. Remember: You’ll need to qualify for the refi loan based on your earnings, credit score, debts, and other financial history.
“During refinancing, the person being removed from the loan will sign off on the property and will no longer be responsible for the loan,” Capozzolo continues.
Your property deed also needs to be updated to reflect the new solo ownership (more on this to come).
Ideally, the new refinance will also save money by lowering borrowing costs. Better's pre-approval can estimate your costs in as little as three minutes.
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How to remove someone from a mortgage without refinancing
Curious how to remove someone from a mortgage without refinancing? Consider the following alternatives:
Loan assumption
Here, you choose to take over the existing mortgage loan without getting a new one. Loan assumption is only allowed if the lender permits it, however, and you must demonstrate that you can afford to repay your mortgage alone.
Loan modification
This involves asking the lender to change the terms of your current loan and remove a borrower’s name. “But lendersrarely approve this unless they have a strong reason,” says Capozzolo.
Sell your home
With this option, you and the other party on the loan agree to sell the property. You can use the sale proceeds to pay off your mortgage and split whatever is left.
Bankruptcy
If the other person on the loan files for bankruptcy, their name could be removed from the mortgage debt – but not from the property deed. The lender may still require you to refinance or assume the loan following the other borrower’s bankruptcy.
“Bankruptcy can also impact mortgage liability in rare cases, but it carries significant credit consequences,” says Yu.
Pursuing a quitclaim deed by itself won’t accomplish this goal, because it only removes the other party from the deed – not the mortgage – making that person still legally tied to the loan even if they no longer own the home.
Steps to remove your name from a deed
Your deed is a legal document that shows who owns the property and serves as proof of ownership. It outlines your ownership rights, is signed by the seller when you purchase the home, and must be signed again whenever the property is transferred. Each transfer is officially recorded with the county or local land records office to make it part of the public record.
To have a person removed from the deed, that person typically needs to sign a quitclaim deed or a warranty deed, which will transfer sole ownership to you, the remaining owner. The county clerk’s office must notarize and file this quitclaim deed or warranty deed document.
“Keep in mind that if a person’s name comes off the deed, it’s not automatic that their name will also come off the mortgage. You usually have to take both steps separately,” recommends Shirshikov.
Changing the deed is important so that the refinance loan and your property’s title will both indicate the same ownership.
Cost of removing someone from a mortgage
Again, nixing a name from the mortgage will involve some out-of-pocket costs. Here’s a breakdown:
- Refinancing fees – often 2% to 5% of the loan amount
- Appraisal fee – $300 to $600
- Title transfer/recording fees – $20 to $250, depending on location
- Notary fee – $10 to $50
- Attorney fee (optional) – $300 to $1,000 or more
“There can also be court costs that apply if the change is part of a legal case or bankruptcy,” says Shirshikov.
Removing someone from a mortgage FAQs
What’s the timeline to remove someone from a property deed?
Removing someone from a property deed can often be accomplished in as little as 1 to 3 days, depending on the paperwork and loan office processing involved. There are no strict deadlines, but particular completion dates could be ordered by the court in matters of divorce or estate settlement.
What are my options to exit a joint mortgage?
Removing a partner from mortgage documents when it’s a joint mortgage can be done in several ways. The best method is to refinance the loan so that it is only in one borrower’s name. Or, you can sell the property, pay off the debt, and split the proceeds. Alternatively, you can have another buyer take over the existing loan if it is assumable. In some cases, one borrower will purchase the other borrower’s equity position and assume full responsibility for the loan.
Which documents are required for mortgage refinancing?
Banks and other lenders usually want to see proof of income in the form of W-2 forms, pay stubs, and tax returns, as well as assets evidenced by bank and financial account statements. They may also require a credit report, an appraisal of the property, and the existing mortgage documents. Additionally, expect to furnish personal ID, homeowners insurance information, the property title/deed, and (if applicable) a divorce decree or legal agreement.
The bottom line
Taking a name off the mortgage is doable but complicated. How to get off a mortgage with someone also involves addressing property ownership and title issues in addition to debt liability. Lender approval is crucial, and planning ahead will help avoid surprises.
Before proceeding, it’s best to seek both professional legal and financial advice and consult your lender to prevent problems or issues, particularly when it comes to taxes and your ability to borrow money in the future.
If a refinance is the best path forward, start by getting a pre-approval on the new loan.
...in as little as 3 minutes – no credit impact