Changing House from my name to LLC

[Karac Davis]

I have a townhouse I’m living in I got for 180k. The rate is 2.75. I have like 25k of it paid off. My wife and I want to move out and keep it as a rental. How can I get it changed to an llc for liability purposes? Citizens bank (where my mortgage is) said I’d have to refinance to put the mortgage in an llc. I don’t want to lose the 2.75%.   Can I keep the mortgage responsibilities in my name, but get eh actually title/deed changed so that the llc would own the house eventually and a tenant couldn’t ever  come after me personally. My wife and I plan to make every rental its own llc in the future. 

[Greg Scott]

You could quit claim the deed into an LLC, but run the risk of the due on sale clause which would allow the bank to force you to refinance. Historically this hasn't happened, but historically rates have been coming down not going up.

You may want to explore just getting better insurance.  I typically had $500K of liability insurance on every property plus a $2M liability umbrella.  I slept just fine at night.

Most people don't manage their LLCs correctly and end up having no protection when the do get sued.