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how to get my ex wife off the mortgage

The divorce is not final but we need to remove her because I am keeping the house. FHA 30 yr fixed and almost to the 80% ltv mark when i planned to refi to eliminate the insurance. i've been told to get her off i must refi but I don't want to jump the gun and not be able to get rid of the mortgage insurance, so what can i do by sarag842376629 from Portland, Oregon. Dec 17th 2014 Reply


Chris Barry (TheLoanDoctor)
#45 ranked lender in Oregon - 40 contributions

Hello. I'm happy to help. This can be a touchy situation and needs to be handled by a professional with experience. I would also recommend we examine other loan products as well, not just the FHA.I'm in the Portland Metro area. Fell free to call me to discuss further.

Dec 17th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

It's a pretty easy process. A conventional loan will likely be your best option, but your wife will have to agree to the refinance as long as she is an owner of the property. Even if the loan is 85-90% it is possible to structure it so there is not a montly PMI payment

Dec 17th 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Typically, in a divorce, the court usually allows you a year or two to refinance... so you most likely can wait.. but I would suggest you go about it right now.. if you refinance now but your above 80% LTV, but at or below 85%, then with conventional MI, the premium is really low if you have a good credit score.. about $23 per month for every $100K financed.. and with conventional MI, once you pay for 24 months, and you have reached 20% equity, then you can ask your lender to remove the MI and you wont have to refinance to do it.. The reason I say do it now is because if you wait for your value to increase, but at the same time the mortgage interest rates increase, you can end up paying more overall than you would have by just paying a small MI policy now.. a $250K loan between 80.01% - 85% LTV, your MI payment would be about $57 per month.. X 24 months = $1,368 in MI costs.. But the same loan amount comparing 4% interest rate vs. 4.5% interest rate, the payment difference is $73, and it would be that high for the life of the loan.. It's very likely rates will be at least 1/2% higher in a year or two if not more.. so i would definitely recommend you refinance now.. .. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Dec 17th 2014
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 71 contributions

After reviewing some of these answers, here is another possible suggestion. If you want refinance her off the loan now and she is amiable to do so, AND you can go conventional on your financing, it is probably the best way to go... My thoughts are if you are close to the 20% equity mark, then it's worth a shot to pay for an appraisal and see exactly where things are at. If you come up just a little short on value, a combination first and second loan combo can be effective to make up the difference and not incur mortgage insurance. A Home Equity Line of Credit can offer inexpensive money at a very low rate and payment... plus, this can be used also to pay attorney costs or settlements to a spouse if the equity is there and you chose to do so. Many HELOC's go up to 90% of the value of the home and have interest only payments. An alternative not mentioned would be a "lender paid MI" option where the MI is included in your interest rate. Or, a one lump sum Borrower Paid MI fee can be paid so there isn't monthly MI in your payment. There are many options available, but your specific situation is what dictates that. Divorce is never fun and being sensitive to the needs and desires of all parties is important, as well as discussing it with a seasoned mortgage professional that can assist you in OR.

Dec 22nd 2014
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