Can you add someone to the mortgage and property title on a cash out refinance?

By Michael Jensen, Mortgage and Finance Guru

Edited by Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience

Updated October 20, 2020

The short answer to your question is yes, you can add someone to the mortgage and property title on a cash out refinance.  You can add a person to a property title through the mortgage process or by using a quit claim deed at any time before or after you refinance.  Usually the only way to add someone to a mortgage, however, is by refinancing your current loan and adding the person to the new mortgage note.

For example, let's say you bought a home when you were single and you have since married.  You can do a cash out refinance and add your spouse to the both the property title -- if you have not already -- and the mortgage.  After the refinance closes you both own the property, are jointly responsible for the mortgage and receive the proceeds from the loan.

You can use ourCASH OUT REFINANCE CALCULATORto determine how much money you can take out of your home 

It is important to highlight that someone can be on a property title without being listed on a mortgage but you cannot take out a mortgage unless you own all or part of the property being financed.  So if you want to add a person to the mortgage when you refinance, that individual needs to be on the property title.  For a cash out refinance, the person would have to be added to the title either before or simultaneous to the mortgage closing. 

Please note that when two people apply for a mortgage, the lender considers the credit score, debt-to-income ratio, employment history and other factors for both applicants.  Specifically as it relates to the credit score, the lender uses the lower score between the borrowers to determine your ability to qualify for the mortgage and to set your loan terms.  The higher your credit score, the better your terms and mortgage rate.

This is an important point to keep in mind if you add someone to a mortgage when you refinance.  You want to make sure that you can qualify for the loan and receive the best terms possible.

If the individual has a high credit score, good income and relatively low monthly debt expense, then adding her or him to the mortgage should help you qualify.  If the person has a lower score and high monthly debt obligation then you may be better off applying for the mortgage on your own and adding the individual to the property title after the cash out refinance closes.

The table below shows refinance terms for leading lenders in your area.  We recommend that you contact multiple lenders to find the lowest cash out refinance rate and fees.  Shopping lenders is the best way to save money on your mortgage.

Sources

"B2-1.3-03, Cash-Out Refinance Transactions."  Selling Guide: Fannie Mae Single Family.  Fannie Mae, July 3 2019.  Web.