How to Change a Name on Your Mortgage Loan

Changing the name on your mortgage loan can be a complicated process, but it may be necessary if you get divorced, want to add or remove a spouse or family member, or simply wish to update your name Here’s what you need to know about changing a name on a mortgage loan

When You Might Need to Change a Name on Your Mortgage

There are a few common scenarios that may require changing the name on your mortgage

Divorce: If you and your spouse jointly hold the mortgage, you’ll likely need to refinance the loan or transfer ownership as part of the divorce settlement. This involves changing the name(s) on the mortgage.
Marriage: If you want to add your new spouse to the mortgage, you’ll need to refinance the loan in both your names.
Removing a co-signer: If you originally needed a family member or friend to co-sign on your mortgage but now want to remove them, you’ll have to refinance or assume the loan on your own.
Death of a spouse: If a spouse passes away, you may need to change the name on the mortgage from both your names to just yours.
Name change: If you change your name for any reason, you’ll need to update it on your mortgage documents.

Refinancing to Change the Name

The most straightforward way to change the name on your mortgage is to refinance the loan. When you refinance, you pay off your existing mortgage and replace it with a new one. This allows you to change the names on the loan documents.

Here are some things to keep in mind about refinancing to change a name:

You’ll have to qualify and apply for the new mortgage on your own if removing a co-borrower. Make sure you can meet debt-to-income, credit, and income requirements.
Closing costs will apply just like with any refinance. They typically run 2% to 5% of your loan amount.
Your new interest rate may be higher or lower than your current rate depending on market conditions. Do the math to see if refinancing makes financial sense.
Refinancing restarts the clock on your loan term. For example, if you had 20 years left on a 30-year mortgage, refinancing would give you a new 30-year term.

Overall, refinancing can be the simplest option if you meet the loan qualification requirements on your own. Shop around with multiple lenders to find the best refinance deal.

Assuming the Mortgage

If you can’t qualify to refinance, assuming the mortgage may allow you to change the name and take over ownership. With mortgage assumption, you legally transfer the loan and property to yourself and become solely responsible for repayment.

You’ll typically need:

The lender’s approval to release the other borrower from liability
A divorce decree if removing an ex-spouse
A quitclaim deed transferring ownership of the home
To qualify financially on your own

Mortgage assumption may avoid an appraisal and credit check, but you still must prove you can handle the payments solo. Assumable mortgages are also less common than in the past.

Removing a Co-Borrower

To remove a co-borrower like an ex-spouse from your mortgage, you essentially have two options: refinance or assumption. Here are some key steps if your goal is releasing them from the mortgage:

Review your divorce settlement or speak to your family law attorney to understand options for transferring the home and loan.
Contact your lender to ask about their procedures and requirements for releasing a co-borrower. Provide necessary documents.
If approved to refinance or assume the loan on your own, submit a loan application and supporting documents to show you now qualify by yourself.
Complete the assumption or refinance process as outlined by your lender. This transfers legal responsibility for repayment from both borrowers to just you.
File a quitclaim deed to remove the co-borrower from the home’s title if needed.

Releasing an ex from mortgage liability takes time and paperwork, but prevents them from being on the hook for future payments. Hire a real estate attorney if you need guidance navigating the process.

Adding a Co-Borrower

On the flip side, you may want to add someone to your mortgage, like a new spouse. Here are some tips:

Refinancing is usually required to add a co-borrower to your existing mortgage. Your lender won’t just add a name without underwriting the new borrowers.
When applying for the refi, your new co-borrower’s income, assets, debts, and credit will impact qualification and your interest rate. Make sure it improves your financial picture.
You’ll share legal responsibility for mortgage payments after adding a new co-borrower. Consider how it benefits both borrowers before proceeding.
A quitclaim deed or new deed naming both borrowers may be required to add them to the home title and confer ownership rights.

Consult an attorney and tax advisor to understand the legal and tax implications before adding someone to your mortgage and property title.

How to Change Your Name on a Mortgage

If you change your legal name, perhaps due to marriage, divorce, or personal preference, you’ll need to update it on your mortgage documents. Here’s the process:

Notify your lender of your new legal name and provide a copy of your updated government ID, marriage certificate, divorce decree, or court order.
Fill out your lender’s name change forms. This gives them permission to update your name in their system and on loan docs.
Make mortgage payments from your new bank account if you changed that. Update auto-debit instructions.
Update the name on your home insurance policy if needed. Provide proof of continuous coverage.
Record a name change affidavit with your county recorder’s office to show the name change on property records.
Ask the lender for an updated mortgage statement, loan note, and deeds showing your new legal name.

Name mismatches between your mortgage and ID documents can cause issues down the road, so it’s important to officially update your name with the lender when needed.

Alternatives to Changing Loan Names

Other options besides refinancing may work if your goal is removing an owner from the home title rather than just the mortgage:

Quitclaim deed: Transfers ownership interest to other property owners. Does not impact loan liability.
Living trust: Places property in a trust. May avoid probate when an owner dies without changing the mortgage.
Buying out equity: Existing owners can buy out and pay off a departing owner’s equity to change the title.
Selling the home: Selling removes all owners and satisfies the mortgage. Then one owner can buy it back in their name only.

Consult professionals to understand if these options suit your circumstances and how they impact your mortgage. The legal and tax consequences vary.

The Bottom Line

While it takes time and paperwork, changing a name on your mortgage is possible. Refinancing to put the loan under your name only or assuming the mortgage from co-borrowers are two main options. Seek help from your lender, a real estate attorney, and a qualified tax professional to ensure you take the right steps based on your situation. With proper guidance, you can successfully modify your mortgage and property ownership.

change name on mortgage loan

Risky alternative: Keeping both names on the mortgage

If you’re still wondering how to remove someone from a mortgage without refinancing, there is one final option, but it’s risky and should only be used as a last resort.

You and your ex can agree to both stay on the mortgage.

This could work, especially if both people decide to continue living in the house. That way, both parties have an incentive to stay current with the payments.

Otherwise, experts advise against this strategy. If either person stops making payments, the house could go into foreclosure, and the credit scores of both will take a nosedive.

If you have no choice but to remain joint borrowers with your ex-spouse, seek legal advice from an attorney first. An attorney may be able to help protect your finances if your ex stops making payments.

The first four options mentioned above require more work, but the odds of a successful outcome are much higher.

Pros and cons of refinancing to remove someone from a mortgage

Divorce and separation are emotionally taxing processes. One important but complicated issue that needs resolving in these scenarios is how to divide up joint financial obligations, like the mortgage debt.

There are a few pros and cons to consider when you are figuring out how to remove someone from a mortgage without refinancing.

How to Remove a Name From a Mortgage

FAQ

Can you change your name on a mortgage?

You can ask to change the names on a mortgage over the phone or in branch. One of our advisers will talk to you about your new needs and will check that all parties to be named on the new account can afford the mortgage payments.

Does it matter whose name is on the mortgage?

When there are two names on a title deed, it means that there are joint owners of the property and each person owns an equal share of the property. The mortgage does not need to include both names to be valid. Even if the mortgage only lists one spouse, it does not affect the share of the ownership of the property.

Can you change the name on a loan?

Names cannot be added or deleted from a loan. Name changes or corrections are acceptable on loan accounts if due to misspelling, incorrect setup of the account, or certain legal conditions. Borrowers may fax or mail documentation to request a Name Change or Correction on a Loan Account.

Can you transfer a house loan to another person?

You’ll typically only be able to transfer your mortgage if your mortgage is assumable, and most conventional loans aren’t. Some exceptions, such as the death of a borrower, may allow for the assumption of a conventional loan. If you don’t have an assumable mortgage, refinancing may be a possible option to pursue.

Can you change a name on a mortgage?

There are a number of reasons you might want to change a name on a mortgage. For example, if you just got married and legally assume your spouse’s last name, changing names is relatively easy. Things get more complicated, however, if you want to add someone to a mortgage or remove them from the loan.

How do I remove someone’s name from a mortgage?

Note: Selling the house is another obvious way to remove both people’s names from a mortgage, but if one party wants to stay in the house, you’ll need to look at alternatives. Refinancing may be the most straightforward way to remove someone’s name from a mortgage, but you may want or need to avoid that option.

Can a loan modification remove a name from a mortgage?

For example, if one party wants to keep the home as part of a divorce agreement, a loan modification may be used to transfer the mortgage into the name of the spouse who will retain the property. Call your mortgage lender or loan servicer to ask whether a modification is an option for removing a name from your mortgage. 3.

Can I remove a name from a joint mortgage loan?

If you want to remove a name from a joint mortgage loan, whether it is your name or the name of your co-borrower, it is possible to do so without refinancing. This situation might occur if a relationship breaks up or a living situation changes. However, each option has its downside and may not be successful.