Mortgage “Half” Buy Out

[/u/Garrry_]

Hey All! My Girlfriend and her Sister bought a house together about 10 years ago on a 25 year mortgage. Now that we are planning to buy a home together (just my Girlfriend and I) we are considering that I buy the sister out of her half, as opposed to them selling, and us buying something else. With that, my question is how would the buy out work? As I understand it, as far as I am concerned on my end, we would agree on a price (the sister and I), with an appraisal, etc, say for easy math we agreed on a sale price of $500,000, then I would get a mortgage for $250,000, and buy her out that way. Obviously there’s more happening on the back end but would that basically sum up what would happen? I’m not concerned with the original price they bought for, down payments, etc. It’s seems simple but I’m sure I’m missing something. Thanks for any info!

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Mortgage “Half” Buy Out
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