Is it worth to refinance my fathers house under my name?

Danuta
My father got involved in a house and wants me to take over the payments and house. We will put the house under my name; but being that my credit is better, I would like to refinance it for a cheaper rate. He has been paying the house for 10 years now and i believe is done with the interest. What should I do?

Asuncion
Refi in your name is called a new loan :). The only person that can refi is your father. If he quitclaims the house to you, then you will be the new owner and you can get a new loan.Most loans have a "due on sale or transfer" clause, meaning that they will be notified when the title transfers and can demand the loan be paid in full before transfer. Obviously you have to pay off the old loan with the proceeds of the new loan.Depending on the real estate laws of your state, you should either use a lawyer or escrow company to do the transfer and recording. This will let you know if there are any liens on the property and if there are any unpaid property taxes due. Be sure to also investigate if there is an IRS lien on it as well. Sometimes they do not record it, so calling IRS may be the only solution.I've seen inter-family property transfers turn ugly, for the above stated reasons. Treat it as a new property purchase, the only difference being the seller is you father.You must get help from an CPA to get info on the tax ramifications also.

Carlotta
you need to use an amortization schedule to figure out any savings. make sure you add in expected closing cost. most bank web sites have programs you can plug in interest rates and length of the loan and the payment you want to make . the smaller the loan the less benefit to you. may consider making extra payments to get it paid off quicker.