I would like to add my grown up children to my mortgage as they are paying it as well as me, how can I go about this and how much will it cost.

June Chapman

Hi June,

I would be more inclined to write a will and leave the children as the beneficiaries. Adding others to a mortgage requires legal advice (as does making a will) and also refinancing the mortgage (extra costs probably). By adding others to the mortgage is that they would become liable for the payments should you not be able to make payments on the re-financed mortgage. Definitely speak to a lawyer before going any further

There is no way to "add" people to a mortgage, and really all that does is obligate them to pay if they don't. Normally you would have to re-finace the mortgage to add new and additional co-lenders.

If they need to talk to the lender, you can give them power of attorney, that way they can discuss the loan with the bank, you can of course leave them the house in a will.

And honestly the childred most likely don't want to be listed on a mortgage, since it obligates them to pay if the other children or you don't.
I know the last thing I would want to be is listed on any of my mom's debts.

As Chuck pointed out, you really don't want then on the mortgage. However, what you might want is to add them to your deed. I think, though, the better advice would be to make them the beneficiaries of your will. If you add them as co-owners under the deed you are essentially gifting them an interest in the property. This might incur some gift taxes. However, if the home is your only asset (which I would suspect it is if they need to help pay), then it will probably escape estate taxes.

The prvious posts are correct in the fact that the only way to add the children to the mortgage is to refinance with the children as co-borrowers. Perhaps the reason that June's children wish to be on the mortgage is so they can deduct the interest from their income for tax purposes. Many people take the tax deduction for interest paid on another's mortgage, and get away with it. My tax (CPA) man has told me that if you are not obligated on the note for the debt, you are not allowed to take the deduction. Maybe the Atlanta Tax Expert, or another professional in that field can confirm this. A few states such as AZ has a Beneficiary Deed that provides for transfer of the property to the beneficiary upon the death of the owner.