How to Keep Your House in the Divorce: Start Here

Divorce brings big financial questions, and one of the biggest is whether you can keep your house. With rising mortgage rates and home values, the decision is more complicated than ever. Keeping your home might save you hundreds of dollars per month in interest alone, but only if it’s handled correctly.

Most people assume they’ll need to refinance, but that’s not always true. Divorce mortgage assumption and other options could allow you to keep your home and your low interest rate. The key is knowing what’s possible before making any costly decisions. A Mortgage Feasibility Report lays out the best financial path, potentially saving you tens of thousands of dollars over time.

Here’s where to start if you want to keep your house after divorce:

• Certain loans allow you to keep your mortgage without refinancing.
• The right legal and financial strategy can protect your home and savings.
• A Mortgage Feasibility Report helps you find the best way to move forward.

Schedule a consultation to see what’s possible.

Can You Keep the House Without Refinancing?

Keeping the home after divorce without refinancing is possible, but it depends on your loan type and financial situation. Many people assume refinancing is required to remove their ex’s name, but that often leads to higher payments, unnecessary closing costs, and worse financial outcomes.

Some loans, especially government-backed ones like FHA and VA, allow for assumptions, meaning you can take over the existing mortgage while keeping the same terms. Other legal and financial strategies can also help you secure the home without taking on a new loan.

A Mortgage Feasibility Report evaluates all options, ensuring you don’t commit to a solution that costs you more in the long run.

What Happens If You Refinance Instead?

Refinancing sounds like a clean solution, but with today’s high rates, it can be a costly mistake. If your current mortgage is locked in at 3% or lower, refinancing at 7% or higher could cost you thousands per year in extra interest alone.

Beyond that, refinancing comes with:

• Closing costs that can add thousands to the overall loan cost.
• Higher monthly payments due to increased interest rates.
• New underwriting requirements, which may make approval difficult.

For many divorcing homeowners, keeping the original mortgage is the best financial move. Understanding whether you qualify for a mortgage assumption or other strategies is the first step to making the right choice.

How Does Divorce Mortgage Assumption Work?

A mortgage assumption allows one spouse to take over the loan without changing the terms. This means you keep your low interest rate, original balance, and loan structure, avoiding the cost of refinancing.

However, not all loans allow assumptions, and qualification depends on the lender’s requirements. Some will require full financial verification, while others have simpler processes. The key is knowing whether assumption is an option before making any commitments.

What If Your Loan Doesn’t Allow an Assumption?

Even if your mortgage can’t be assumed, there are still ways to keep your home without refinancing. Some lenders approve loan modifications that remove a spouse’s name while keeping the same mortgage terms. In other cases, financial agreements in the divorce settlement can help structure payments without triggering a refinance.

Working with a professional ensures you explore every possible option. Without a proper review, many homeowners unnecessarily refinance, losing their low rates and increasing their long-term costs.

How Much Can You Save by Keeping Your Mortgage?

The savings from avoiding a refinance are significant. If your current mortgage has a 3% interest rate and refinancing would put you at 7%, the difference over a 30-year loan could be well over $100,000. Even over five years, the extra cost could total tens of thousands of dollars in interest payments alone.

These savings don’t even factor in closing costs, loan fees, and other expenses tied to a refinance. Keeping your current loan structure puts you in a stronger financial position, allowing you to preserve wealth instead of handing more money to the bank.

Talk to a Professional Before Making a Costly Mistake

Keeping your home after divorce is about more than just staying put. It’s about protecting your finances and making sure you don’t take on unnecessary expenses. The wrong decision could cost you thousands, while the right plan can set you up for long-term stability.

A Mortgage Feasibility Report will give you clear answers, showing whether assumption, modification, or another strategy is the best move. Before committing to a refinance or making a financial mistake, schedule a consultation today.