I own a home in Texas occupied by my mother in law. I want to refinance and ask if I can deed her 1/2 interest and we both qualify for refinance. This will help with her rent by decreasing taxes and insurance which currently cannot have homestead exemption and has un-owner occupied insurance on it. Is this legal and do I have to have approval of current lender?

It will not really be a "refi" it will be a new finance since new loan will be in both names and new deed is issued with new person.

I would speak to lendingtree.com, after speaking to a banker you can trust. That is, not your banker, but one you know as a friend.