Divorce Settlement Refinance - The Mortgage Mentor
Hi, I'm Rebecca Richardson and I'm a senior mortgage consultant with Windham capital mortgage.
As somebody that's been through separation and divorce, I understand being in that mindset where you might be making some financial decisions for the first time on your own. They're just frankly, a lot of unknowns, which cause added stress. A common situation that people face is what to do with their home. They maybe need to buy out a spouse of the equity or just simply refinance the mortgage and the title into their name only. There's actually a special provision, if somebody is going through the situation, they have the ability to tap into the equity in their home and actually go up to 95% of the appraised value to then buy out a spouse equity in that property.
The reason that that's an advantage is that in many cases, you're capped at 80% of the appraised value. So tapping into this strategy helps you save money, and also be able to use more of the equity in the home to settle this type of agreement versus having to say tap into retirement funds, or other savings. One thing that I want people to be aware of is that earlier in the process, that we can have this conversation and come up with a strategy, it helps avoid problems down the road.
I want you to know that I'm here as a resource to have a conversation with you, somebody you care about, an attorney, whatever needs to be done to help to make sure that what everybody's best intentions are, can actually be executed in the way that they want. That's what's captured in the agreement that ultimately gets signed and agreed to by all parties. I would love to be able to make that process transparent and give you some insight that might be able to make that process go a little bit smoother and have a successful outcome.