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.
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.