How to Keep Your Low Interest Rate After Divorce

Divorce brings enough financial uncertainty, and losing your low interest rate on top of everything else can be a major hit. With rates higher than they’ve been in years, keeping the loan you already have could save you tens of thousands of dollars. But most people assume refinancing is their only option, which often isn’t the best move.

The truth is, there are better ways to handle your mortgage after divorce, and you may qualify to keep your current rate. Divorce mortgage assumption is one option, but understanding whether it applies to your situation requires professional insight. That’s where the Mortgage Feasibility Report comes in. With a clear financial plan, you can make the right decision and avoid costly mistakes.

• Some loans allow you to keep your current mortgage and interest rate after divorce.
• Not all lenders will tell you what options exist, but a mortgage review can uncover them.
• A consultation with The Divorce CFO could save you tens of thousands of dollars.

Can You Keep Your Mortgage After Divorce?

The first question most people ask is whether they can stay in the home without refinancing. The answer depends on your current loan, income, and whether your ex-spouse agrees to let you assume the mortgage. Some loans allow for an assumption, which means you take over the existing loan without changing the terms.

Many homeowners don’t realize that they already have a loan that qualifies for an assumption. This means no new underwriting, no increased rates, and no unnecessary closing costs. However, lenders won’t go out of their way to make this clear. They may push refinancing as the only option, even when better alternatives exist.

This is why a full Mortgage Feasibility Report is essential. It identifies whether an assumption is possible, how to qualify, and what steps to take to protect your financial future.

Why Refinancing After Divorce Can Be a Bad Idea

At first glance, refinancing might seem like a simple solution. You remove your ex from the loan, secure a new mortgage, and move forward. But with today’s interest rates, refinancing often leads to higher payments, larger loan costs, and a weaker financial position.

Refinancing means replacing your current mortgage with a new one at today’s rates. If your existing rate is locked in at 3% or lower, refinancing at 7% or higher could cost you hundreds per month. Over the life of the loan, that adds up to tens of thousands of dollars lost.

For many divorcing homeowners, keeping the current mortgage through an assumption or another legal option is far better than refinancing. But the only way to know for sure is by reviewing your situation with a professional.

What Is Divorce Mortgage Assumption?

A divorce mortgage assumption allows one spouse to take over the existing mortgage without refinancing. Instead of applying for a new loan, you assume the terms of the current mortgage, including the interest rate and remaining balance.

While this is an option on many government-backed loans, the process isn’t automatic. The lender will still require financial review, and qualifying can be complex. Many assume they won’t meet the income requirements or that the process will be too difficult, but the reality is that many people qualify when they have the right guidance.

The biggest mistake is making a decision without knowing all the options. This is why the Mortgage Feasibility Report is critical. It shows exactly what you qualify for and what steps you need to take. Before assuming refinancing is your only option, get the facts.

What If You Don’t Qualify for an Assumption?

Even if your current mortgage isn’t assumable, there are other ways to keep your home and your low interest rate. Depending on the loan type and how the mortgage was structured, alternative solutions may allow you to stay in the home without unnecessary financial loss.

Some strategies include legal agreements with your ex-spouse, restructuring financial obligations, or using creative lending solutions that protect your existing rate. Without reviewing all possible options, many homeowners take on new loans when they don’t need to.

The Mortgage Feasibility Report outlines the best approach for your situation, ensuring you don’t walk away from the best possible financial outcome.

How to Get a Mortgage Feasibility Report

The Mortgage Feasibility Report is a personalized analysis of your current mortgage, divorce agreement, and financial situation. It answers key questions like:

• Can you assume the loan and keep your current rate?
• If not, what alternative strategies exist?
• What steps should you take to secure the best financial outcome?

By getting this report before making any decisions, you can prevent costly mistakes and ensure your next move is the right one. Most people don’t realize how much money they can save until they see the numbers laid out clearly.

Schedule a Call and Protect Your Financial Future

Losing your low interest rate in divorce doesn’t have to be a given. There are better ways to handle your mortgage, but you need to know the facts before making a move. The wrong decision could cost you tens of thousands of dollars, while the right strategy could help you keep your home and your low rate.

The Mortgage Feasibility Report will give you clarity, options, and a plan. Before making a decision that impacts your future, schedule a consultation today and get the answers you need.