Here's How to Keep Your Low Interest Rate Post-Divorce

Divorce changes a lot of things, but losing your low interest rate doesn’t have to be one of them. With mortgage rates at their highest in years, the difference between keeping your current rate and refinancing could mean hundreds more in monthly payments and tens of thousands over the life of the loan.

Most people assume their only choice is refinancing, but that’s not always the case. There are ways to keep your mortgage and interest rate after divorce, and you may qualify for a divorce mortgage assumption or other options that lenders won’t tell you about. The key is knowing which path makes the most financial sense for you.

• Some loans allow you to keep your current mortgage and interest rate.
• Refinancing could cost you thousands in higher payments and fees.
• A single consultation with The Divorce CFO can show you how to save tens of thousands on your divorce.

Can You Take Over the Mortgage Without Refinancing?

One of the biggest myths in divorce is that the only way to keep the home is to refinance the mortgage into your name. In reality, many loans allow for an assumption, meaning you can take over the mortgage without resetting the rate or extending the loan term.

Divorce mortgage assumption isn’t automatic, and lenders don’t go out of their way to make it easy. Qualifying depends on your financial situation and the type of loan you have, but many homeowners are eligible without realizing it. Even if your loan isn’t assumable, there may be other ways to avoid a costly refinance.

A Mortgage Feasibility Report breaks down your options, showing exactly what’s possible based on your current mortgage and finances. Before assuming refinancing is the only way forward, get the facts.

How Much More Will You Pay If You Refinance?

Refinancing at today’s interest rates can dramatically increase your monthly payment. If you locked in a 3% mortgage a few years ago and now face a 7% refinance rate, the financial impact is massive.

Let’s say you have a $400,000 mortgage:

• At 3%, your monthly principal and interest is around $1,686.
• At 7%, that jumps to $2,661—almost $1,000 more per month.

That’s not including closing costs, lender fees, or the added interest over time. This is why refinancing can be a bad deal for divorcing homeowners, especially when other options may be available.

The only way to know the best move is to run the numbers. A Mortgage Feasibility Report lays out your real costs, helping you avoid an expensive mistake.

What If Your Ex-Spouse Wants to Keep the Home?

If your ex wants to keep the house, you’ll need to be removed from the mortgage. The problem is, refinancing may not be the best move for them either. If rates have gone up, their new loan could be significantly more expensive.

Divorce mortgage assumption allows one spouse to take over the mortgage, removing the other without triggering a refinance. This option is available on many government-backed loans, but the process isn’t always straightforward. Lenders require proof of financial ability and will still need to approve the assumption.

Instead of guessing or leaving it up to the bank, get a feasibility report. It shows the best way to handle the mortgage so that both spouses get a fair financial outcome.

What Happens If You Can’t Assume the Mortgage?

Even if your loan isn’t assumable, there are still ways to keep your home and avoid taking on an expensive new mortgage. Some strategies involve legal agreements with your ex-spouse, adjusting financial obligations, or restructuring assets to make staying in the home financially viable.

Too many people rush into a decision without exploring all possibilities. The Mortgage Feasibility Report is designed to make sure you don’t leave money on the table. It evaluates every option so that you know exactly what works best for you.

How to Get a Mortgage Feasibility Report

Before making any decisions, you need a clear picture of what’s possible. The Mortgage Feasibility Report provides a personalized analysis of your current mortgage, divorce agreement, and financial situation, answering key questions like:

• Can you assume the loan and keep your low rate?
• What alternative strategies exist if an assumption isn’t an option?
• How can you secure the best financial outcome in your divorce?

By getting this report before making any mortgage decisions, you’ll have a clear path forward and avoid unnecessary financial loss.

Get the Facts Before You Make a Costly Mortgage Decision

Losing your low interest rate doesn’t have to be a given. There are ways to keep your mortgage, avoid a costly refinance, and save thousands of dollars but you need to know your options first.

The Mortgage Feasibility Report gives you the clarity and confidence to make the best financial move for your future. Before making a decision that could impact you for years, schedule a consultation today and take control of your divorce finances.