i had a similar question posed to my loan agent.

keep in mind that i’m in no way a professional in this topic

my agent told me that there is no such thing as “transfer of loan”. there is only a refinance.

any fees associated would be just the same as originating any new loan.

i had a similar question posed to my loan agent.

keep in mind that i’m in no way a professional in this topic

my agent told me that there is no such thing as “transfer of loan”. there is only a refinance.

any fees associated would be just the same as originating any new loan.

That’s correct. The lender doesn’t want to do all the due diligence and paperwork necessary to take on a new debtor. Plan to refi it, or….
just informally start paying on the loan in place of your parents. If it is good rate, this may be the best course of action. Of course, all kinds of problems can crop up when family finances get mixed up like this. For example, what do other siblings say about this? Also, lender may force a sale or refi if they find out your parents are breaking one of the many covenants on the pages and pages of fine print your parents signed to get the loan.

That’s correct. The lender doesn’t want to do all the due diligence and paperwork necessary to take on a new debtor. Plan to refi it, or….
just informally start paying on the loan in place of your parents. If it is good rate, this may be the best course of action. Of course, all kinds of problems can crop up when family finances get mixed up like this. For example, what do other siblings say about this? Also, lender may force a sale or refi if they find out your parents are breaking one of the many covenants on the pages and pages of fine print your parents signed to get the loan.

That’s correct. The lender doesn’t want to do all the due diligence and paperwork necessary to take on a new debtor. Plan to refi it, or….
just informally start paying on the loan in place of your parents. If it is good rate, this may be the best course of action. Of course, all kinds of problems can crop up when family finances get mixed up like this. For example, what do other siblings say about this? Also, lender may force a sale or refi if they find out your parents are breaking one of the many covenants on the pages and pages of fine print your parents signed to get the loan.

This could potentially even make refi a difficulty down the road.

Banks will sometimes add someone to a loan (like refi-ing from wife to husband and wife)but I have not seen them remove someone from a loan except for a sale.

Doing a sale from parent to child will be tough because it is not an arm’s length transaction.

You owe it to yourself to investigate the transfer scenario now.

It is possible lending standards will change prior to that time (as they have in the last 3 years) but you owe it to yourself to know the options going in at least.

This could potentially even make refi a difficulty down the road.

Banks will sometimes add someone to a loan (like refi-ing from wife to husband and wife)but I have not seen them remove someone from a loan except for a sale.

Doing a sale from parent to child will be tough because it is not an arm’s length transaction.

You owe it to yourself to investigate the transfer scenario now.

It is possible lending standards will change prior to that time (as they have in the last 3 years) but you owe it to yourself to know the options going in at least.