Forgotten Your Password?

Need to Register?

Question Icon

If my husband and I are about to divorce should we wait to refinance?

by AbbyJanz from Preston, Missouri. Jun 14th 2013 Reply


Christopher Arco (1stNationwide)
#174 ranked lender in California - 55 contributions

That would depend on if you need both incomes to qualify for the loan. You dont have to be married to be on a loan together. If you planning on a divorce you should contact an attorney before the disposition of any assets.

Jun 14th 2013
2
0
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

That's a tough one, and a lot of info is missing.. who's going to stay in the home after the divorce?? Can the person staying in the home after the divorce afford and qualify for the loan on his/her own?? if it takes both incomes to qualify, for it to be done, it would have to be done prior to the divorce.. also note that the after the divorce, both parties would still be obligated for the payment, and any future loans would account for the mortgage payment in their debt to income ratios regardless of who lives there.. talk to your attorney for the best advice on how to proceed, but you need to be aware of the upside and down side before you make your decision.. .. 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

Jun 14th 2013
2
0
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

That's a tough one, and a lot of info is missing.. who's going to stay in the home after the divorce?? Can the person staying in the home after the divorce afford and qualify for the loan on his/her own?? if it takes both incomes to qualify, for it to be done, it would have to be done prior to the divorce.. also note that the after the divorce, both parties would still be obligated for the payment, and any future loans would account for the mortgage payment in their debt to income ratios regardless of who lives there.. talk to your attorney for the best advice on how to proceed, but you need to be aware of the upside and down side before you make your decision.. .. 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

Jun 14th 2013
1
0
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

Remember, anyone who signs on the mortgage note is responsible for the payments, until the loan is paid off.

Jun 14th 2013
1
0
Richard Airey (richardairey)
#3 ranked lender in Maine - 662 contributions

The correct answer is: "It depends". Here's the good news; you are asking this question earlier rather than later. My recommendation is to consult with a lender in your area now. They will be able to provide a mortgage consultation, a copy of your credit report, and let you know what you would currently qualify for as well as what you will qualify for based on your estimation of the final outcome of the divorce. Believe me, this information is Valuable! I cannot tell you how many customers come to me after the ink is dry just to find out that they cannot qualify for a refinance to buy out the other party, or to purchase a new home after vacating the family home. This is due to many factors including new monthly child support payments, alimony payments, late payments made on joint accounts, etc. The best advice I can give is to consult with a trusted mortgage loan officer early in the process!

Jun 14th 2013
1
0
Mike Towler (mortgagemiket)
#39 ranked lender in Missouri - 26 contributions

I agree with what has been said here. There are a lot of questions that need to be answered before giving you advice. But you should consult with a mortgage professional before you make a decision on the home for the divorce. I can do loans in Missouri so please feel free to contact me.

Jun 14th 2013
1
0

I would reconcile the marriage,

Jun 14th 2013
1
0

I would reconcile the marriage,

Jun 14th 2013
1
0
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions

In a divorce, one person typically stays in the house, and is ordered to make the payments. The other signs a quit claim deed, removing them from legal ownership. This DOES NOT remove them from responsibility of the home loan. In my opinion, when a divorce is final, it is always best to have 100% of your liabilities be separated. I am not talking about keeping a credit line open, with the judge saying he or she is to pay the car loan, or the mortgage... NO, I am saying that whoever keeps the car refinance the car loan into their name only. Whoever keeps the house needs to refinance in their name only. That all joint credit cards be 100% closed. I have seen way too many disasters over the years where the "responsible" party for a joint loan ends up not paying, wrecking the credit of the other. So NO, you should not bother refinancing today.

Jun 15th 2013
1
0
Ron Wohlfarth (RonWohlfarth)
#34 ranked lender in New Jersey - 65 contributions

Good Morning AbbyJanz...I also agree with Mortgage Miket...I agree with what has been said here. There are a lot of questions that need to be answered before giving you advice. But you should consult with a mortgage professional and a Divorce Attorney before you make a decision on the home for the divorce. We can do loans in Missouri so please feel free to contact us at: Money@Ronwohlfarth.com

Jun 15th 2013
1
0
Karen Keaton (KarenK)
#47 ranked lender in Indiana - 9 contributions

If you have already filed for separation, you will not be able to refinance until your divorce is final. Those final papers determine how assets are divided etc.

Jun 15th 2013
1
0
Karen Keaton (KarenK)
#47 ranked lender in Indiana - 9 contributions

If you have already filed for separation, you will not be able to refinance until your divorce is final. Those final papers determine how assets are divided etc.

Jun 15th 2013
1
0
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions

That depends on your plans. Typically in a divorce one party keeps the house and the other gives up ownership. If this is your plan, then the one giving up ownership shouldn't remain on the loan so refinancing wouldn't be wise. I would NEVER advise an individual to sign over their ownership in a property unless they are also being relieved from the loan. Example: My wife and I divorce and she keeps the house. I sign over the property to her, but that has no impact on the debt to the bank. She stops making payments and I can't even sell the house to satisfy the bank. Why? Because I don't own the house anymore, she does. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jun 16th 2013
1
0
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions

That depends on your plans. Typically in a divorce one party keeps the house and the other gives up ownership. If this is your plan, then the one giving up ownership shouldn't remain on the loan so refinancing wouldn't be wise. I would NEVER advise an individual to sign over their ownership in a property unless they are also being relieved from the loan. Example: My wife and I divorce and she keeps the house. I sign over the property to her, but that has no impact on the debt to the bank. She stops making payments and I can't even sell the house to satisfy the bank. Why? Because I don't own the house anymore, she does. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jun 16th 2013
0
0
Subscribe to our news feed.