I'm getting a divorce. What is the cheapest way to refinance my house?
Filing for divorce. I need advice on the least-expensive way to have the mortgage on my house put solely in my name without having to come up with the closing costs.
Other than a refinance, there are no viable options to remove your name from your current house mortgage. Your lender is not likely to voluntarily remove your name from the mortgage because the lender wants as many people to have liability for the mortgage as possible.
Divorce and house debt
A mortgage is formed by contract. A divorce decree does not trump the contract terms in a loan. The contract was agreed to when the loan was signed by you and 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.
Regarding your question, this is one area in life where shopping is indeed the solution to your problem. Compare the terms of your current loan with those of any refinance offered to make sure that the new terms are competitive with those of your previous loan. Some lenders have higher closing costs on mortgage refinances than others.
To learn more about refinance loans, I encourage you to visit the Bills.com home refinance page. See the Bills.com mortgage refinance savings center to get no-cost loan offers from pre-screened lenders.
I hope the information provided helps you Find. Learn. Save.
Mortgage market: a pulse check
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 November 1, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of November 1, 2023 stands at 7.76%. This reflects a 3 basis points decrease 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 November 1, 2023 is 7.03%, indicating a 0 basis points - no change - 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 November 2, 2023 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 7.70%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.84%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,990. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,484.
Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.