Removing a person from an existing loan in the situation of divorce or dissolution of an investment property partnership remains a difficult proposition without refinancing. Refinancing is a solution in these situations, but the decision to do so is not typically made with a reduction in rate being the primary objective. Although it’s not bad either when we are able to get the rate lower too.
What many people are surprised by is that the person that was on the original loan is required to re-qualify for the refinance in many cases. There are a few cases depending on the type of loan that you have that this is not the case, but in general this is the norm.