In most states filing a quit claim is fairly easy. The person who wants to quit claim fills out a form and files it with the county; the quite claim would be from Mary to Mary and John. The HELOC bank should be able to file it with the other docs if that’s the way you want to go.
Mr R is not on the title, so won’t be on the mortgage. He can still be a signer on the loan, but for him it will be an unsecured loan as he doesn’t have ownership in the property so can’t secure the loan with the property.
FYI as an update, this was what my credit union finally came up with. It took a while because they won’t accept my fellowship income as income so we waited to get last year’s w-2 as according to them, I made all of about $6k in 2015 & 2016 (as I was on fellowship and that was my non-fellowshp income).
“In reviewing the loan-to-value for the property, you could borrow up to $xx,000 at 70% LTV with a current rate of 4.75% or you could borrow up to $xx,000 at 80% LTV with a current rate of 5.25%. Please keep in mind that this is a variable interest rate, and it can change. Please also note that the minimum monthly payment will be 1.5% of your outstanding balance at the last time that you have advanced your line of credit.”
Now that I have all the papers together, I’m going to try a handful of other places just to see if they give us better rates. Also I have no idea how they came up with the LTV since 70% is significantly higher than the value they gave. But either way, we’re comfortable with the amount of the 80% line.
Did you have an appraisal? That’s where they get the LTV amount. If not, they can do a valuation using their calculations.
Do you want a variable rate rather than a fixed rate? The fix rate will probably be higher, but the variable rate can GO higher.