Tag Archives: Disadvantages

Tara Mortgage Services Featured Blog: Joint Mortgage vs Joint Ownership…Do You Know The Difference?

DHREA 31/07/2019
This image has an empty alt attribute; its file name is download.jpg

Joint mortgages can give you access to more funding for a home mortgage than applying on your own. However, joint mortgage and joint ownership do not mean the same thing. If you’re researching how to buy a property jointly, you may also see terms like “joint tenancy” or “tenants in common.” Although they sound the same (and may even be used interchangeably), all of these “joint” terms may not refer to a joint mortgage.

Read on for in-depth guidance with purchasing a property jointly and please contact our office for personalized information.

What is a Joint Mortgage?

A joint mortgage is a home loan approved to two or more people.

You’ll typically associate this type of loan with married couples. However, joint mortgages can in involve partnerships such as family, friends, or investors who are willing to share the responsibility of the loan.

A joint mortgage allows borrowers to qualify for a more substantial loan amount than they can individually because of combined the total household income and combined credit scores.

Joint Mortgage Disadvantages

All parties on the mortgage share the responsibility, meaning all are equally liable for repaying the loan. It also means that all share the implications of negative or positive credit activity as a result of loan management.

Additional Things to Consider

Disputes or ending of partnerships can complicate joint mortgages. For example, one may agree to a quitclaim deed, relinquishing ownership of the property; however, it may not affect the mortgage responsibility. So if any person missed a payment, the other(s) would still be responsible for making it, even without any ownership over the property.

Joint Mortgage vs. Joint Ownership

Here is where people often get confused: a joint mortgage shares the responsibility of the loan while joint ownership is determined by the title or deed. Essentially, a person can be a part of a joint mortgage but not own the property.

Conversely, an individual can be on the title of a home (ownership) but not have any of the financial liability or credit impact.

Is one better than the other?

Having a joint mortgage, joint ownership, or a combination depends on financial your goals. They each have disadvantages and significant financial opportunity, too. The important thing is that you have all your questions answered before you commit. Contact Tara Mortgage Services today for an obligation-free consultation!

Network with nearly 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Analyze a Buy and Hold Property. Its not all about the numbers.

Saturday, Aug 10, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

14 Members Attending

This workshop is one of the most important sessions if you want to learn how to analyze deals for buy and hold. Its not all about the ROI. There are many other factors to consider when you have a long term strategy. We will go into detail and look at various scenarios and different property styles and types. From an A area single family property to…

Check out this Meetup →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
167 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

Read More
Call Now Button