Mortgage Refinancing
 

Long time lurker, first time posting :fullofwin:

A friend of mine wants to take out a loan from his property and refinance it since interest rates are so low and he wants to start a small business. Sounds simple enough but there are three owners including himself for his property and they've talked to the bank that issued their mortgage before and the bank said they would need all 3 owners to agree with it and can't just borrow his portion from the house. The house is fully paid off.

His other friend recommended him talk with a company called Tudor Mortgage and he did, they wanted almost $2000 in legal/lawyer fees and 8% interest rate for the amount he wants to borrow, which seems awfully high.

Does anyone know of another method where he can take a part of his equity out of his property and refinance it himself or is that the only way?

Can anyone recommend an institution that offers less than 8% for this kind of service? I haven't looked into it personally since it's not my property and I don't know how much he wants to borrow or the evaluation of his property is.

Tell your friend to check these 2 links out:

Borrowing on Home Equity

Shopping around for a Line of Credit

The only option would be to complete an Independent Legal Advice document with a lawyer. Basically what it means is if you were to get a mortgage, the two other owners must legally know that their property is being held as a collateral. Should the guy default on the payments, the bank will have to be paid off first. I highly doubt the two other guys will be okay with it.
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