Mortgage Solutions for You: Divorce Settlement Special

Published by pacbay on Thu, 03/13/2014 - 16:56 in
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*Divorce settlement special. Cash-out is usually up to 60% LTV. Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

A couple was going through a divorce where a husband wanted to keep the house. They agreed that the value of their home was $800,000. The current mortgage had a balance of $350,000. 

To enable him to keep the property, he had to give his ex-wife his share of the difference or $225,000. As a result, his new loan was $575,000 or 72% LTV. For most of the lenders, this transaction is called a “cash-out refinancing”. This triggers an increase in the rate and limits the LTV to 60%.

We found a different solution.

Our lender did not consider it as a cash-out because of the divorce and we were able to close the loan with a low 30 year fixed rate.

To help couples find tailored mortgage solutions, please contact Manny Kagan.

Whom do you know that might benefit from our tailored mortgage solutions?

Equal Housing Opportunity Lender

355 Gellert Blvd, Suite #230, Daly City, CA 94015
Main: 415.242.0730 / Fax: 650.550.4961

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