Trying to Refinance after Divorce?
Tips to Help You Refinance your House in your Name after the Divorce
Are you getting divorced in the middle of a bad real estate market? Do you have to refinance your mortgage in only your name after years of having two incomes to support your mortgage?
“The ability to successfully refinance the loan in your name only will depend on your credit, income, and the amount of equity in the home,” said Greg McBride, a senior financial analyst at bankrate.com. “Falling home prices could throw a wrench in those refinancing plans if you owe more than the home is worth or if you possess little equity in the home.”
Here are three tips to help.
1. Get your credit reports.
Begin the process by getting a free copy of your credit report from each of the three major credit bureaus and immediately correct any errors.
2. Look for deals.
Shop around to find the most competitive terms. (Readers can compare rates at Bankrate.com.)
3. Consider stability.
Especially following a divorce, you’ll want some stability in your life. Go with a fixed rate mortgage, which offers the certainty of a monthly payment that won’t change. Don’t shortchange your future financial security just to save a few bucks temporarily on an adjustable rate mortgage.