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After a divorce, is it better to refinance or perform a mortgage assumption?

are there any costs involved in a mortgage assumption? by DLeto_336_539 from Tucson, Arizona. Sep 20th 2012 Reply


William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

There's a lot of information missing in your question to properly answer, but I'll try anyway... If you were awarded a home in a divorce, then usually the court will also make you refinance or assume the existing mortgage.. But if the loan is already in your name, then there is nothing more to do.. If the loan is not in your name, then you would be better off assuming the existing mortgage (assuming it's assumable).. FHA, VA & USDA all allow assumptions with qualifying, however conventional does not.. As far as costs on an assumption, yes.. But the only way to find out is to contact the lender... in any case, it will be thousands less than refinancing.. Now if the current loan rate on the existing mortgage is high, then it might be more beneficial to refinance, since you would be getting a lower rate, and recasting your loan out to 30 years.. effectively lowering your monthly payment... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 20th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,828 contributions

It depends. If the rate on the current loan is comparable to what you could get today (in the 3s), why would you want to? If you are already on the note, is the loan HARP eligible? It is possible to remove the ex during the refi, but HARP requires that you already be on the note. There will be costs and you would have to check with your lender to see what they are. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Sep 20th 2012
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Sandy McKee (smckee)
#41 ranked lender in Arizona - 23 contributions

Hello,My guess is that you are on the note with you ex. So, typically you would not have an option to assume your own note. You can call your current lender and ask. Your best bet, more than likely, may be a refinance. I would love an opportunity to discuss with you. Thank you. Sandy McKee 520-907-3225

Sep 20th 2012
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Fernando Albarran (fernando)
#57 ranked lender in Arizona - 26 contributions

An assumption would have to be taken up with your current lender to see if they would allow and if so, what the fee would be.With rates as low as they are, I would recommend looking at a refinance. Even if the home has little to no equity or even negative equity, you should be below 4%. We currently offer programs with no negative equity caps.

Sep 20th 2012
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Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

You can't assume your own mortgage. Meaning... If you are already a borrower on the existing mortgage, there is only one way to remove your ex and that is through a refinance. The silver lining is that you may be able to save quite a bit by doing so in today's interest rate environment. I am also a lender in AZ.

Sep 20th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

First, who is your bank? that will make all of the difference.. I refer people to a company that can work with you on the assumption part, if you are not currently on the note, and will work gettting the ex off of the note, but you do need to follow what your dirvoce papers state, so that is where you first need to check.. my emial is yourloanpartnerforlife@live.com linda AZ

Sep 20th 2012
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