I just wanted to run this by the community at large.
Say I own a house together (50/50) with my sister that is worth 1 million, and there’s 200K left on the mortgage.
To buy out my sister’s portion, I would subtract 200k from 1 million and divided it evenly, for a cash out payment of 400K to my sister. Since I don’t have the cash, I am looking into borrowing the 400K additional from the mortgage company, for a total loan amount of 600K.
Even though 100K from the remaining mortgage is my sister’s liability, after the buyout, it then becomes my liability, and I have to pay interest on this 100K over the new loan period – is that fair?
There’s also a real estate transfer property tax that I am expected to pay at closing, and I can’t seem to get around with the lenders – is this right?