Can one person receive equity on a joint mortgage?

Question

I own a home with my room mate. I need equity to help pay for legal fees. Can I get a equity loan for my half or the bank needs both signatures?

Answer 1

What Huntsman says is exactly true.  Are you planning for the legal fees or do you already owe them?  If you don't owe them yet perhaps you can get around not adding that to your debt.  I'd say don't rack up bills unless you have a credit card with that amount allowed on or unless you have a savings account to back that up.  Here's the thing, if you're in a home less than ten years then you don't have any equity at all in the home (neither of you do) because when you buy a home the mortgage company takes out only the interest for the first ten years.  After the ten years you will be paying a large amount to interest and a very tiny amount toward your mortgage, so it sounds like you're going to have to find another way to earn the money to pay those legal fees.

Answer 2

If you take care of your home and pay as much as possible on your mortgage you will be on a fast track to financial success. The more you do to increase your homes equity and pay off your mortgage completely – fully owning your home, the faster you can insure your future finances. Think about how nice retirement could be or what sort of investments you could make with no mortgage to pay and sitting on all of the equity!

Answer 3

You need both signatures.  From a practical stand point that means that both owners must be aware of the loan or line of credit and both must approve it and, of course, both owners are responsible for repaying it (joint and several liability).

Answer 4

Never, never, never, buy a home with a person who is not your spouse. Trouble, trouble, trouble.