Transfer title?

[Scout]

We're would like to transfer title to our name and refinance mom's existing mortgage. These are the facts:

 

1) We live in my DH's mom's house. She is elderly with Alzheimer's, and very frail. DH has been her primary caregiver for five years, with no income. My income is approx. $80k. She has the house in a living trust and DH is the only benificiary.

 

2) He has Durable Powers of Attorney for finance and health. Title company will transfer title with verification from two docs that she is unable to make these decisions. (In CA, the title can be transferred from parent to child with no reassessment.)

 

3) We want to refinance the existing $50k mortgage, with cash back to pay off high interest debt and improve the house -- total of $150k on the loan. We plan to live in the house at least ten years, or longer. Our credit scores are 620 and 684. Mortgage broker thinks we might get rate of 6.75 on a fixed 30-yr loan. I don't feel comfortable with an ARM, since we plan to stay in the house long-term.

 

Should we transfer the title and finance under our name, or refinance under his mom's name?

[willtygart]

what do you think the appraised value will be?

[Scout]

About $450,000.