Mortgage down payment vs payment of principal after divorce
Hi Terry,
I need to refinance my mortgage due to divorce. I’m trying to decide if I should make a down payment of $25K to reduce my monthly payment or pay $25K after I close to reduce the balance. My thinking is, based on the amoritization schedule, reducing the balance will save me alot of interest payment. While the monthly payment is higher (I’m still working to learn by how much), I don’t think it will that be that significant. Then again, I’m 70 so should I even care about saving interest payments. Hope the question makes sense….interested in your thoughts and thanks for answering.
Terry Says
Whew, this question needs to be answered in context of how much other liquid savings you have, and what the monthly payments would be. And what other income you have.
The BIGGEST challenge will be actually GETTING a mortgage, since I’m guessing you are not still working and no longer have an income!
And how is the title being changed to your name, per the divorce? If the title is changed to your name only, the current lender will have the right to call the mortgage. Discuss this with your divorce attorney, as it may impact your settlement if you need (and can) to refi and it impacts your income.
If you want to provide more info, please respond to the email that says y our question has been answered, and maybe I can point you in the right direction.
