You and your spouse are divorcing. You have kids and really want to keep your marital home. But the problem is that you’ll need to refinance the mortgage in order to put it in your name only. And while your credit may be good, you’re concerned about the rising interest rates.
There’s no doubt that the housing market has been crazy in the past year. Houses have been selling for way above asking price. Now interest rates are skyrocketing. High interest rates can be frustrating, but they shouldn’t deter you from staying in the marital home if that’s really what you want to do. However, you need to be able to afford the monthly payment.
Higher interest rates mean higher monthly payments. This means you’ll need more money overall, which is not always possible after a divorce. So in order to determine if you should still refinance, you’ll need to consider these two points:
If you can answer yes to both questions, then by all means move forward with refinancing. Why? Because you’ll be accomplishing your goal. Sure, most people refinance in order to take out cash or get a lower interest rate, but in the midst of a divorce, you can’t wait for interest rates to go down. You have to take what you’re given. You can always refinance in the future and lower your interest rate. Rates will most likely go down at some point.
If you plan to refinance your home in the midst of a divorce, consider using a divorce mortgage broker. They can help you find the right lender and mortgage product for you. Plus, they understand the divorce process and are used to working with divorce attorneys. They also know how to connect you with a broker who is knowledgeable about what requirements lenders are looking for in divorcing applicants.
A divorce mortgage broker can also help you:
Divorces can be complicated, especially if you want to stay in the marital home. Interest rates are climbing. Is it a good time to refinance your home or should you pass?
Seek legal advice from a Columbia divorce lawyer from The Law Offices of Todd K. Mohink, P.A. We can guide you after a divorce. To schedule a consultation, call (410) 774-5987 or fill out the online form.
7310 Ritchie Highway, Suite 910
Glen Burnie, MD 21061
30 Corporate Center
10440 Little Patuxent Parkway,
Columbia, MD 21044