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TODD K. MOHINK, PA Glen Burnie & Columbia Family & Criminal Lawyer

Should You Still Refinance Your Home In A Divorce?


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.

What You Need to Determine

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:

  • Can you qualify for the mortgage amount you need to pay off the current balance?
  • Can you afford the monthly mortgage payments, on top of real estate taxes, homeowner’s insurance, HOA fees, and any other costs associated with the property? If so, will you have enough extra money to pay for other bills and expenses?

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.

Work With a Divorce Mortgage Broker

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:

  • Increase your credit scores.
  • See what qualified income you have.
  • Pay off or assign debt to your spouse to improve your debt to Income ratio.

Contact a Maryland Family Law Attorney Today

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.


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