Refinancing parent’s home

[Andre Le]

Hello everyone,

My parents have about 200k left on their mortgage and I think around 150k in a HELOC. The house has appreciated to around 2mil so there's about 1.6mil in equity. I feel like the equity sitting there is just wasting away doing nothing. I was wondering if I can take over the mortgage and refinance it to buy investment properties out of state. Are there any requirements needed to do so or do they have to do it? Also, the house's title/deed is under my Uncle's name so I'm not sure if that affects anything. Is it better to contact a loan officer for these answers? Any help would be appreciated, thanks!

[Jake Wiley]

It would behoove you to contact lenders specifically about what is possible.   Sounds like there are some moving parts here with it being your parent's house, but in your uncle's name.   

If you "took over the mortgage and refinanced it" you'd either have to get whoever has their name on the loan to get on board and sign up for this with you.   I am not sure what the principal is they are amortizing but could be a pretty big jump in payments assuming there is a lot of appreciation going on here.    Secondarily, if the plan is to take it over yourself, you'd likely have to purchase the home/title it in your name and thus we create a sales and taxable event for your parents or possibly your uncle.    

I'd see what all the potential options are and lay them out on the table, and that probably starts with lender conversations.