Typically how long before removing a co-signer off a conventional owner occupied mortgage?
Is this usually done by just an addendum or do you have to refinance?
I am not 100% sure, but I think you have to refinance.
I cant imagine any lenders allowing a cosigner to be removed by simply signing an addendum. Most likely will have to refinance. Unless there is a strategic reason (It's holding them up from other financing) to remove them I wouldn't worry about it.
There's no upside to the bank to remove a co-signer from the mortgage. I'm pretty sure you would have to do a refi.
Imagine if you were the lender. Would you take away one of your chances to get paid? I know I wouldn't. If you cosign, you do it for the life of the loan.
Saying an OO mortgage implies secondary market loans and you won't have a co-signer, you can have a co-borrower. If it isn't a secondary market product, as mentioned, there is no upside for the lender and they won't release anyone until the loan is paid off.
That said, it wouldn't be impossible for a lender to agree up front in creating a loan that they would take a co-signer for a stated period of time or when the collateral value increases or the LTV reaches a certain point, this is done primarily in commercial aspects.
Co-signing is not something one should do, I'll join as a co-borrower but never as a endorser or guarantor in that traditional sense. :)
If you're referring to a traditional loan, such as Conventional/FHA/VA/USDA, then you can NOT remove a co-signer from a note. You would need to refinance.
Thanks to everyone for clarifying this. I appreciate it.
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