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Mortgage Refinance or Equity Loan without spouse’s influence
In my 39-year marriage, I’ve gotten my husband out of debt twice by taking on part-time employment while working full-time. Now he’s there again and is not willing to share what these debts are. Our first mortgage was paid off earlier this year. Our second mortgage (consolidation loan) will be paid in full by Spring of ’08. As of that date we will be listed as joint with ownership of our home and the IRS-that’s all. As a result his not filing for several years we owe an approximate balance of 10K which I am paying via payroll deduction. I have already paid 7K. I am desperate to break free of his negative influence. Can someone share how filing separately once the mortgage is paid off would affect a re-fi or equity loan in MY NAME ONLY? Is this at all possible?
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1 Reply
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I can understand why you are feeling the way you are. It seems that you are looking forward to obtaining an exclusive separation from your husband, which is why obtaining a refinance or equity loan only in your name appears reasonable.
Obtaining only in your name a refinance or an equity loan
Possibility: It is highly feasible to have your mortgage refinanced or apply for a home equity loan solely in your name if you satisfy the lender’s criteria. However, this may change depending on the current mortgage structure and regions.
Equity Considerations: Irrespective of your husband’s interests, as long as you are the only title holder of the house after the second mortgage is paid, you should be able to work on the house’s equity.
Impact of Filing Taxes Separately
Tax Filing Status: Filing separately raises taxes, especially if you owe a debt to the IRS. However, other reasons exist to refinance the home or access its equity.
Debt-to-Income Ratio: Debt-to-income (DTI) becomes critical in insolvency determination when applying for a loan. If this debt is for IRS deduction from payroll, it will be counted in your DTI.
Credit Score and Financial History
Creditworthiness: Making a loan application will always depend on your financial history and score in that particular case. Several factors influence our creditworthiness. Schedule your credit report properly, and if there are any debts, see how you’ve been managing them.
Solo Financial History: Regarding refinancing your equity or a loan, please contact us if your husband has debts that are not joint and are only listed on the new loan under your name. As long as the critical factor is your refund positioning and reputation are in good standing,
Consulting Professionals
Financial Advisor or Attorney: One can contact attorneys practicing family law with a particular interest in financial separation or other professionals, such as financial advisors. The person adds value to your overall case strategy and the other objectives, including neutralizing cash resources via the refinancing process.
Mortgage Lender: Seek counsel from a mortgage lender about the refinancing alternatives available. This is important because they can outline the details of the refinancing conditions and what effects refinancing and a loan borrowed in one’s name would entail.
Steps to Take
Gather Documentation: Compile the relevant financial documents, which contain income statements, credit reports, and even mentions of any other debt held.
Assess Your Home’s Value: To determine your equity, appraise or assess your home’s market value.
Begin with the Application: Once you’re eligible, the first thing to do is apply to lenders ready to refinance or give you an equity loan.
Relying on a main or equity loan in one spouse’s name is possible after the second mortgage has been discharged. Keeping separate tax returns does clarify your loan level, for example. Still, it is not strictly necessary to obtain a loan. Professionals can be of tremendous help during the process. Ask away if you have additional questions or would like help with something else!