I have a mortgage on a vacation condo which is about half the value of the condo. My sister-in-law would like to become half-owner in the condo. My mortgage has a due on sale clause--would I have to pay off my mortgage in order to accomplish this? I'd like to keep my mortgage until the 5/1 arm expires in two years b/c of the low interest rate. Would this be a problem with the lender?

You're sister could be added to the deed of the property through a title company. However if she wants on the actual mortgage then YES you would have to refinance to add her to the Note. You could probably still get another 5/1 ARM which would give you another 5 years of these great low rates! If you need any help please contact me directly!

The due on sale clause is usually triggered when one of the original owners is removed.. you can add someone to title, however you cannot remove someone.. that's when it becomes an issue.. This however only refers to the title to the property.. when It comes to the mortgage, the only way to add someone is to refinance.. they would have to have to fully qualify meaning satisfactory credit, income and ratios just as you did when you originally purchased it.. .. 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. 480-287-5714 WilliamAcres.com

You can add anyone you wish to the title of the property... That makes them an owner. Being an owner and being on the mortgage loan can be two separate items.