My boyfriend and I are looking to refinance and since he has a lower credit score overall, we would save money and interest by using my better score. The difference overall would be about $3,000-$6,000 in closing costs and points purchased. There might be other differences we are unaware of though?
Anywho, our question is: Would it be wise, or are there any strategies, to refinancing under my better credit score alone. Would this be worth it to save on the closing costs and purchased points? Would we be able to still create an agreement between ourselves, within maybe an LLC, that still share the legal obligation of the payments to the loan? Would it be wiser to refinance together with the lower credit score so his will improve since we plan on investing in many more properties in the future?
Since you are unconcerned about the credit, I think my only other advice is this: treat this like investing with a co-investor, not a boyfriend. Do everything the way you would with a business partner and make decisions based on good business practice, not emotion. Best of luck!
What is the reason that his credit score is lower?
I'd be very cautious about tying my good credit score with someone's lower score. I'd want to know the reason why the score is lower. People tend to be who they are when it comes to credit. And if you (who cares about your credit) tie yourself to someone who doesn't care about their credit score, you can be setting yourself up for financial abuse or a credit score disaster.
If you decide to invest with your boyfriend, it would be a good idea to get a lawyer to go over the ownership expectations and division in the event you split up. You want everything to be clear and in writing.
Since you are unconcerned about the credit, I think my only other advice is this: treat this like investing with a co-investor, not a boyfriend. Do everything the way you would with a business partner and make decisions based on good business practice, not emotion. Best of luck!
Hopefully this helps, I was previously having the same issue with my wife being on the loan. Due to her credit score(Now fixed) and the fact that she is a stay at home mom(has $0 income) makes it difficult to put her on the loan, so I don't. It's not a big secret or big deal depending on how you look at it. If you want, you could go on the loan solo and to make sure your boyfriend doesn't feel left out of anything you can add him to the title of the home giving him the same rights in the home as yourself. BUTTTTT (before someone destroys my comment in the comments section, LOL) I will say I feel very comfortable doing this due to the fact that it is my wife. You can both be on title as joint owners of the property, but you being approved and on the loan solo means you are liable for that promissory note that you signed and you are responsible to repay that mortgage. I personally wouldn't pay extra especially thousands unless you want him to share that financial obligation with you. Either way hope this helps!! P.S you could also wait for the credit to be repaired to a certain point and revisit the refi but with these current rates IDK