Posted on: 07th Jun, 2007 12:45 pm
i'm getting a divorce, though it will not be final for quite some time. in the meantime, my to be ex-wife & i agreed that i did get the existing house & ex buy a new smaller house. ex's already put an offer in on a smaller house & it was accepted & the closing is next month. so i have to provide ex funds from this current house. the current house is completely paid off, no mortgage. i need to get $200k out of it so i can give it to ex for closing on her new house. so my question is - what kind of mortgage do i need to get? i know i need to get her to do a quit claim deed, but just researching mortgages online, it doesn't seem to be a refinance, since there is no existing balance - & half the applications doesn't even let it go through unless i put a dollar amount of the existing 1st mortgage. but its not really a new purchase, as i already own the house. and i really don't want a home equity loan, since this will be a long-term loan to pay off & i'd prefer a lower interest rate with the mortgage. so anyone have any advice? what kind of mortgage should i actually be looking at? i know speaking with a broker might answer this question, but i'd like to research it a bit first before contacting one, but i'm not sure exactly what kind of loan/mortgage i should be researching.
Hi Henry,
Welcome to Mortgagefit discussion board.
As you do not have plans to shift and intend to stay in this home for sometime, I would say you look for fixed rate mortgage of 30 yr term. Currently this type of loan has quite competitive rates and will be suitable for you.
Thanks
Blue
Welcome to Mortgagefit discussion board.
As you do not have plans to shift and intend to stay in this home for sometime, I would say you look for fixed rate mortgage of 30 yr term. Currently this type of loan has quite competitive rates and will be suitable for you.
Thanks
Blue
How much is current value of the house henry. First you need to know if you would be able to take out a 200k mortgage on the house or not.
You need to look at rate quotes for different types of mortgages and compare the monthly payments you will have to make on them with the funds available with you. Your decision should be based on the kind of mortgage payments that will be affordable for you.
There are various types of loans like arms and frms of different terms. If you are looking at stability in your mortgage payments throughout the term of the loan then a fixed rate will be the right loan type to select. On the other hand you can look at 5 yr arms, which initially would have lower rate, if you have plans of refinancing within a few years.
Provide us with few more details about the plans you have and we would be able to give you more information on what will be most suitable for you.
Miller
There are various types of loans like arms and frms of different terms. If you are looking at stability in your mortgage payments throughout the term of the loan then a fixed rate will be the right loan type to select. On the other hand you can look at 5 yr arms, which initially would have lower rate, if you have plans of refinancing within a few years.
Provide us with few more details about the plans you have and we would be able to give you more information on what will be most suitable for you.
Miller
Hi Henry,
Thanks for sharing your situation with us here. I really appreciate that you're trying to help you ex-spouse even though you're separating. That's a good gesture indeed.
You can go for a short term loan such as balloon mortgage as you are not willing to manage long term payments. But, when you opt for such a loan, just keep in mind that you will have to pay a lump sum payment when you end up with the short term period of the loan.
In general, balloon mortgages are short term fixed rate loans and would hopefully be suitable for you since you are looking for low monthly payments.
You may refer to our section on Balloon Mortgage to find out more on how these loans work.
If you have any related query, please feel free to share it with us. We shall try our best to help you out.
Good luck :)
Thanks for sharing your situation with us here. I really appreciate that you're trying to help you ex-spouse even though you're separating. That's a good gesture indeed.
You can go for a short term loan such as balloon mortgage as you are not willing to manage long term payments. But, when you opt for such a loan, just keep in mind that you will have to pay a lump sum payment when you end up with the short term period of the loan.
In general, balloon mortgages are short term fixed rate loans and would hopefully be suitable for you since you are looking for low monthly payments.
You may refer to our section on Balloon Mortgage to find out more on how these loans work.
If you have any related query, please feel free to share it with us. We shall try our best to help you out.
Good luck :)
"but just researching mortgages online, it doesn't seem to be a refinance, since there is no existing balance"
It is not a refinance Henry.
Refinance means you already have a mortgage which you are paying off and taking a new loan in its place.
It is not a refinance Henry.
Refinance means you already have a mortgage which you are paying off and taking a new loan in its place.
Here is some random (but relevant) advise for those with real estate/mortgages facing divorce:
a. If you need to refinance, do it before you get divorced (unless you don't need both incomes/credit to qualify).
b. Get your name off the deed before the ink dries on the divorce (despite what a court order or divorce decree, anybody that is on the mortgage is liable and their credit histories will be effected).
c. Divorce joint accounts too (seperate all credit accounts and remove other party from the account).
d. Establish new credit before divorce (for those who's only established credit is shared accounts with spouse).
e. Two options in disposing of co-mingled real estate:
- Sell and it split the proceeds.
- Refi and cash out/buy out spouse
Hope this helps...
Regards,
Scott Miller
a. If you need to refinance, do it before you get divorced (unless you don't need both incomes/credit to qualify).
b. Get your name off the deed before the ink dries on the divorce (despite what a court order or divorce decree, anybody that is on the mortgage is liable and their credit histories will be effected).
c. Divorce joint accounts too (seperate all credit accounts and remove other party from the account).
d. Establish new credit before divorce (for those who's only established credit is shared accounts with spouse).
e. Two options in disposing of co-mingled real estate:
- Sell and it split the proceeds.
- Refi and cash out/buy out spouse
Hope this helps...
Regards,
Scott Miller
You should take on a second mortgage which is similiar to a 1st lien mortgage but gives you the option to hold the loan for a term then a equity loan.
This can be done very easliy...
Thanks-
Frank
[Link deleted as per forum rules. Thanks.]
This can be done very easliy...
Thanks-
Frank
[Link deleted as per forum rules. Thanks.]
Hi CEO,
Welcome to our forums.
Hope you will find it fun interacting with the other members here. :)
Thanks,
Brian
Welcome to our forums.
Hope you will find it fun interacting with the other members here. :)
Thanks,
Brian
It is a refinance. Just becasue there is no existing mortgage does not make it a purchase.
If calculating modles make you put in a mortgage balance, put in $1 mortgage balance or any number so you can get the calculator to calculate. You know there is no mortgage balance.
Once again, it is a refinance.
If calculating modles make you put in a mortgage balance, put in $1 mortgage balance or any number so you can get the calculator to calculate. You know there is no mortgage balance.
Once again, it is a refinance.
