If I add someone to title, does that make them responsible for the loan as well?
When you add someone to the title to of your home, this does not automatically make them responsible for the loan.
Many owners assume that if they add someone to the deed (title) of their property, the new owner is also obligated to repay the loan. This is not the case! The loan is still attached to the property, but unless your lender modifies the loan documents and your new owner signs the loan modification, the new owner is not on the hook for your loan. You alone remain solely and fully responsible for the repayment of the debt to the lender.
You may also add someone to title of the home and then refinance. This will result in the new owner being responsible for repayment of the debt, but in this scenario you actually payoff the previous loan and create a new one. This is considerably more expensive! It’s a good idea to check with your current lender to see if they will allow you to modify your existing loan before adding someone to title.
Additionally, adding someone to title may cause your loan to be all due and payable. A quick review of your loan docs will let you know if this is the case. When you’re going to add someone to title of your home, make sure that’s not the only concern!