Refinance at divorce
I am 76, w-52,-d-19. I am retired, wife works, We are separated, Between us owe about $50 K. New Home Equity $73 K. Mortgage paid. Wondering if should get mortgage , since rates low to pay off credit cards and wife wants to buy home, and so if get $350,000 with cash out, will pay off credit cards, repairs on house and wife will have about $200,000 to put down new home , Will save finance charges if we refinance our house and when she buys , won/t need to pay costs, of refinancing
Terry Says
Well, that'[s complex. And I have some unsettling news for you. I’ve you’re retired you have very little chance of getting a new mortgage, since you can’t demonstrate income. And they don’t take SS and pensions into consideration for mortgage loans!
Now, you could refi WITH your wife — but if you’re officially separated, that could be considered mortgage fraud.
It doesn’t seem that you’re handling your finances with an overall perspective. I’m not a marriage counselor, but have you figured out how each of you can live separately as well as you do together? Have you considered selling your house — splitting the equity — and moving into an apartment, or senior community (NOT assisted living) but a place where you can afford the rent and will have companionship, and assistance in the coming years?
If you sell the house, you can pay off any debt and go your separate ways. Or you could decide it’s cheaper to live together and lead separate lives. If your daughter isn’t out of the house now, she will be soon. But if you haven’t managed to live together without accumulating debt in this house, then I don’t know how you will be able to do it alone! Better to think about the future now, while you will have cash from a sale and are young enough to create a new living situation than face this issue 5 years down the road when things might not be so easy.
