Why does it cost $500 to remove a cosigner from my mortgage?

My father co-signed a mortgage for my then fiance and myself. Now that she works full time from finishing school, we would like to take my father of and put her on. Citi Mortgage who holds the load originally told me on the phone it would be $900 to do that. Then, when the paperwork arrived in the mail, that amount was $500.





How do I get Citi to remove this ';processing fee';? Is it even real or am I being hosed here?





Thanks!Why does it cost $500 to remove a cosigner from my mortgage?
Almost any time the terms of a mortgage are changed, the lender has to do paperwork to record the revised mortgage with the deed and land records office in your community, plus they have to do due diligence on your wife (credit checks, etc.).





That said, the $500 does seem a little steep to me. I would ask them for a breakdown and challenge anything that seems odd.





Make sure you are not mistaking a mortgage obligation from a place on the deed. You will need to have your dad quitclaim any share he has on the house back to you and your wife. If he doesn't he will retain some ownership right to your house with no obligation to pay the bills, and your wife will only have obligation to pay but no right of ownership.Why does it cost $500 to remove a cosigner from my mortgage?
It's probably to cover expenses, and some profit also. My guess is that Citi has to do a credit check on your fiance, and verify that she actually has a job, that her income is as stated, etc. There may be some filing fees to record the change with whoever tracks this where you live, maybe tax stamps, etc.





You're certainly within your rights to ask Citi to break the costs down for you. That doesn't mean that they will give you a detailed explanation, though. But it won't hurt to ask.
That sounds kinda fishy to me! I tried to take my sister off from my mortgage cuz she is a co-signer also. Wells Fargo said that was possible but we'd have to pay a non-fundable $2,000 to remove her and i needed to re-qualify for the property. We didn't go through with this for the fact of losing that $2k if i wasn't qualified for the property. U may want to talk with another Citi Mortgage Representative.