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Should we take on a 2nd mortgage jointly or refinance current mortgage into one spouse's name only?

My wife and I are currently trying to get into a new home, but are unlikely to be able to sell our current home in the near future. We can afford a second mortgage payment, but are considering how to go about it. Would it be easier/better to apply for a second mortgage jointly or to refinance the current mortgage into only one of our names while the other spouse applies for the second mortgage alone? We both have roughly the same income and credit scores. by dcbris_278_775 from San Diego, California. Jun 26th 2013 Reply


Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

It doesn't sound like you are going to accomplish anything by refinancing your current loan into one spouses name while the other applies for the new purchase loan since you each have roughly the same income. The reason is each spouse would need to qaulify for their own loan with their own income. So applying separately or together will not really do anything to improve the ratios needed for qualifying and you will have to go thru the process of having 2 loans approved instead of one.

Jun 26th 2013
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Jackie Peck (JackiePeck)
#81 ranked lender in Georgia - 21 contributions

As long as you can qualify with your current mortgage payment, taxes, insurance, and home owners association as well as the loan on the new home you can just go ahead and purchase a new home. It's when you are unable to qualify with both that causes the issue. I am licensed in Georgia and South Carolina so I cannot assist you but a local lender certainly can.

Jun 26th 2013
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Jason Vondrak (jvondrak)
#220 ranked lender in California - 1,741 contributions

If you and your wife are able to qualify for a second mortgage with your current mortgage payment, tax and insurance payments and all other debt payments there is no reason to try and refinance your current property so that it's only under one of your names. If you both make about the same amount of money and have about the same credit scores it would be the same thing applying for a second home together versus a single home alone. The main benefit of refinancing would be if you could get a lower interest rate to make your current home loan more affordable. We are also located in San Diego - feel free to give us a call if you would like to chat about you situation in more detail - 858-605-0952.

Jun 26th 2013
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Hans Bruhner (Hans Bruhner)
#132 ranked lender in California - 125 contributions

It sounds like you want to sell your current home so definitely do not refinance it and spend the money. Concentrate on the next purchase and be thankful that you do not need to make an offer contingent on selling your current home. Call me at 415-843-0142 if you like. I am in California as well. www dot Ask The Loan Man dot com

Jun 26th 2013
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Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions

Hello -- the problem you would run into if you tried to do the refi and purchase in separate names is that though the income might be there separately -- the lenders are probably going to count any of your spouse's debt payment obligations against you on both sides, which may make your debt to income level incompatible with accomplishing your goals.You would be best served by contacting a local, licensed mortgage professional, like the ones at our sister office of Bay Equity there in San Diego, at 855-757-8797.

Jun 26th 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

Your better off applying jointly, and there's no benefit of refinancing the existing loan unless there is a benefit to doing so, IE.. lower interest rate, lower payment, shorter term, etc.. If you refinance the existing mortgage into one name only, then purchase a new home in the other name only, both your debt would be counted against you twice but without having the benefit of the others spouses income.. so your far better off applying jointly. .. 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

Jun 26th 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

Your better off applying jointly, and there's no benefit of refinancing the existing loan unless there is a benefit to doing so, IE.. lower interest rate, lower payment, shorter term, etc.. If you refinance the existing mortgage into one name only, then purchase a new home in the other name only, both your debt would be counted against you twice but without having the benefit of the others spouses income.. so your far better off applying jointly. .. 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

Jun 26th 2013
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