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Cashing out one's home equity is often a good way to settle marital settlements. Replacing the former joint mortgages is also beneficial to both parties.
Financial Security
Better Loan Terms
Cash for Settlements
When you're getting a divorce, there are many things to think about. Many people don't know that, even if you and your former spouse get a divorce decree, if your mortgage is in both names, it can still put both of your financial futures at risk.
Every time a payment is missed on a joint loan, it hurts both credit scores. You'll have to refinance the mortgage on the house before you can sell it or move out, which means you could be stuck with the loan for quite some time after the divorce has been finalized.
A divorce is a stressful situation. RP Funding wants to help you make it less stressful by letting you take out cash from your home.
If you have equity in your home, RP Funding can help you use your equity to get the cash you need to settle any financial arrangements as a part of the property division. A typical "Cash-Out Refinance" can cost up to 3.125% more. With an RP Funding Divorce Refinance, you can get better terms on a loan to get the money you need at a lower cost.
At RP Funding, you may even be eligible to have your Closing Costs paid. See if you qualify for our No Closing Costing program.
The divorce decree may have ended your relationship, but did you know it didn't end the financial relationship created by your joint mortgage? Here are six reasons why you should refinance your mortgage after a divorce:
It is the only way to truly end the financial relationship created by the original joint mortgage.
The equity in your home could be the key to making any lump sum cash payments as a part of the property division.
Even with a divorce decree, missed payments could still hurt both former spouses' credit.
It'll make sure that the loan doesn't impact either former spouse's ability to buy a house in the future—and we see people getting denied mortgages because they failed to refinance previous mortgages after divorce all the time.
If you keep your name on the mortgage, you'll be liable for income tax reporting and credit reporting/credit score issues—just because you're not on title anymore doesn't mean that you can ignore those responsibilities.
If you remove yourself from the deed but not the mortgage, you effectively give up ownership of the asset without losing liability for it.
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