- A mortgage, like a marriage, is a contract.
- There is no waiting period to refinance after divorce.
- A quitclaim deed takes a few minutes for a paralegal to prepare.
How long must I wait after a divorce before I can refinance a home awarded to me?
I have a pending divorce and the primary residence mortgage and title is in spouse's name. If the judge from the state of Maine awards me the house in the divorce judgment, will I be able to refinance the home and pay off existing home equity, tax liens that are in spouse's name? Will I have a waiting period before I can refinance it after acquiring title?
There is a key misconception in your question I need to address before answering the main issue in your question.
Mortgage
A mortgage is a loan secured by real property and paid in installments over a set period of time. The mortgage secures a promise that the money borrowed will be repaid. A mortgage is formed by contract. Generally speaking, courts are reluctant to alter the terms of a mortgage, and do so for only the most unusual situations. Divorce is not unusual.
A divorce decree does not trump the contract terms in a mortgage to the best of my knowledge. The contract was agreed to when the loan was signed by you and/or your spouse. The divorce did not rewrite the contract. You may ask, "But doesn't the divorce decree trump the loan contract?" No, it does not. Unless a court actually enters into an agreement to change its terms, an existing agreement remains in effect regardless of a subsequent divorce decree. The divorce is a new agreement between the spouses regarding their financial responsibilities, but it is not binding on third parties.
If the court awards you property titled and mortgaged by your spouse, your spouse will most likely execute an interspousal quitclaim deed that gives you all of the rights to the property that your spouse has. A quitclaim deed takes a few minutes for a paralegal to prepare, and even less time for you and your spouse to sign it (usually in the presence of a notary public). The title is the easy part.
The mortgage may be more difficult. It may be more difficult because, typically, a spouse cannot "sign-over" a mortgage to another spouse. This can only happen if your spouse has an assumable mortgage, which are rare. Your first task is to learn if the mortgage is assumable. If it is, you are in luck and all you need to do is complete the forms necessary to assume the mortgage.
Mortgage shopping
If the mortgage is not assumable, which is probably the case, then you need to find a mortgage. This is one area in life where shopping is indeed the solution to your problem. Click on the link I just mentioned to learn what you need to qualify for a mortgage. Or, visit the Bills.com mortgage saving center for no-cost, pre-screened quotes from mortgage lenders.
I am not aware of any waiting period in any state that person must wait before refinancing or securing a new loan following a divorce. Start your shopping now.
I hope this information helps you Find. Learn & Save.
Best,
Bill
The Latest on Mortgage Rates
It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate
Mortgage rates April 10, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 10, 2024 stands at 6.88%. This reflects a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 10, 2024 is 6.16%, indicating a 10 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for April 14, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- For a 30-year conventional loan, the interest rate is 7.09%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.29%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,874. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,399.
Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.
