If you move forward with this transaction you want to make sure that your name is off the mortgage.
Coldwell Banker Residential Brokerage
Bethany Beach, DE 19930
The best bet is to have your friend and his girl apply for a new mortgage. At settlement (conducted by a real estate attorney), you will receive your share of the money. A new mortgage and a new deed are issued in their names, and you no longer have financial or legal responsibility for the property.
If you are thinking of taking the $60,000 and having your friends "take over payments", you are thinking of a transaction called an "assumption". This was done years ago rather frequently, but no more. Read your mortgage documents carefully. Unless your current mortgage is over 20 years old, you will find language prohibiting assumptions and you will find your initials or signature on the page.
Be smart. Get your money and get your name off the deed and mortgage!
They would need to consult with a mortgage officer since they need the $60,000 to buy you out. They could get a FHA mortgage to pay off the current mortgage and to pay you. The mortgage officer could see if they qualify for the mortgage.
The only way that the mortgage can remain at $85 is if they pay you cash for your interest, or , they take out a 2nd to pay you off.
If they refinance, they will owe $85 + $60 = $145
The rates will be whatever they can qualify for.
Their monthly payments will be whatever they can negotiate.
I'm not used to the Seller negotiating for the Buyers.