TYPES OF LOANS
SEPARATION & DIVORCE
This is a sensitive time and never an easy conversation for either side. There are many decisions involved and often times it’s helpful to simply have an conversation.
In order for this to happen, you will need to know your share of the equity. To determine your portion you will:
Value the house
Subtract the outstanding mortgage (including penalties) balance
Calculate your share of the remaining equity (Generally we see the equity split 50/50)
Once you know the dollar amount to pay out your partner, you then start working with your mortgage professional to refinance your home. Keep in mind, you will need sufficient equity in your home and will need to qualify for this mortgage on your own in order to put the house in your own name.
For various reasons neither party may want to stay in the matrimonial home and you may decide to list your home for sale. Your realtor will be able to provide you with a realistic sale price on your current home.
Your mortgage professional will be able to develop a closing cost sheet based on your eventual sale and your purchase in order to determine if there are enough funds for this to happen. During this meeting they will project if any other debts need to be paid off, legal bills, etc.
Sometimes this is the best option depending on your individual circumstances. You may not necessarily qualify on your own or sometimes people just need some time before getting into the housing market again.