Just my husband's name on refinance application or both of ours? Need advice....

[ACsMom]

Hi, all!  We are hoping to refinance our home at a fixed rate and we're filling out an application for Wells Fargo - what I'm wondering is if we should fill it out with just my husband's info. on it or if we should include me as co-borrower, as it is on our current mortgage, which we've had for 8 years.  The thing is, my credit is not as good as his.  My credit score itself is pretty good - 732, I think (my husband's is 785), but I have a LOT of debt, and a couple years ago I had some late payments (on a medical bill and on a couple of store credit cards - I know, dumb) that led to my big credit card companies lowering my limits and/or raising my interest rate, even though I had never had a late payment for either of them.  So for about a year my credit score hovered in the high 600's.  It's back up now, as I said, but if I put my name on that application they're going to run a credit report on me and see all this stuff that's less than 3 years old.  We've never had a late payment on our mortgage, or car loans, or anything else.  My husband is by far the primary bread-winner.  I have a part-time job working from home but I only bring in 3-500 a month before taxes.  It would be good to include that income on the app., but at the same time I wonder if we risk not getting the great interest rate if we put me on there.

Anyone have experience/expertise on this?  Thanks so much!

[MariesMama]

Our bank suggested getting our mortgage in just MY name if DF's credit was spotty - and we each bring in the same amount of money.  I would say just go with him on the applications, while you work on your credit. 

[cristeen]

With a score of 732, it shouldn't be an issue at all.

I'm hesitant to ever tell anyone to do it separately for the simple reason that you have to take your name off the property in order for him to refinance on his own.  And if something were to happen, you could be up a creek with no recourse. 

[MeepyCat]

I'm with Cristeen here.  While you can probably refinance the mortgage in his name only without messing with the ownership of the house (our mortgage is in DH's name, while the house is in both of ours, due to mortgage paperwork screw-ups), it really could put you in a tough spot if anything were to happen to your DH.  If the mortgage belongs to both of you, and one of you dies, the survivor can just keep paying it.  If the mortgage is only his and he dies, you might have to refinance in a hurry, at an already immensely stressful time.

Bank reps will often give you the advice that allows them to sell you the most profitable possible mortgage product.  If you need financial advice, talk to a financial planner or an estate lawyer.
 

[ACsMom]

thanks for the replies!  This has been such a back-and-forth thing for us, and we need to make a decision really soon.  I think I'm going to take your advice and talk to someone, Meepycat. :)