So I'm going to form a partnership with an friend to own rental properties. The first property that we're going to rent out is the home I'm currently living in (we are building a new home, and would rent the current home out). I currently have a mortgage on the house at 3.75%.
So the question - is it possible for my friend to assume half of the mortgage without refinancing? The plan is that he would purchase half of my equity in the property and then we would create an LLC that would own the property with each of us owning 50% - but would this require us getting a new loan? Obviously, we would have a significantly higher interest rate and would have to deal with all the closing costs, so we'd like to avoid that avenue if possible.
TIA.