Member of the Colorado Bar Association

Board Member of
the Colorado Collaborative Divorce Professionals


When the Simple Becomes Complex:

Huettner Capital is a residential and commercial real estate lender. We handle all types of financing and specialize in complex transactions.

These situations typically involve self-employment, multiple properties, wealth management, investment property, relocation, and divorce to name a few. However, most people do not realize how frequently their situation is too complex for the typical lender to handle effectively.

Getting these loans done is not the problem. The problem is the people getting most borrower’s their loans. They simply have far too little knowledge and experience to get anything other than the cookie cutter loan done in less than several months. This is the reason why the traditional loan origination process just doesn’t work any more.

Creating a team and new loan process that works with full documentation loans, especially the complex ones, was the whole point in starting Huettner Capital from the very beginning. Welcome to the solution!

Historically low interest rates over the past several years and a recent sharp increase in rates, many homeowners find themselves financially and emotionally tied to their current low-rate mortgages. This guide will go over how loan assumptions can be a valuable tool during divorce, allowing one spouse to retain the home and the advantageous mortgage rate.

We’ll explain what a loan assumption is, how it can benefit you during a divorce, and introduce my loan assumption plan designed for couples and attorneys. Plus, don’t miss details about my upcoming presentation at the Colorado Bar Association Family Law Institute in Vail this August.


What is a Loan Assumption?

A loan assumption occurs when one borrower takes over the existing mortgage of another borrower. This process can be particularly useful in divorce situations where one spouse wishes to keep the family home and the low interest rate associated with the existing mortgage. By formally assuming the loan, the assuming spouse becomes solely responsible for the mortgage payments, while the other spouse is released from liability.

This mechanism not only simplifies the financial separation but also allows the assuming spouse to benefit from the original low mortgage rate, which can be significantly lower than current rates.

Benefits for Consumers

For consumers, particularly those going through a divorce, loan assumptions offer several advantages:

  • Retention of Low Rates: One of the primary benefits is the ability to retain a favorable interest rate. Given the substantial increase in interest rates recently, this can result in significant savings over time.
  • Rental Opportunities: Homeowners may also consider turning their home into a rental property while purchasing a new one. In this scenario, they keep the original loan and its low rate.
  • Transferring to Children: Parents can transfer the home to their children through a sale or gift, allowing the children to keep the existing loan. This can be done with or without a formal loan assumption. Without it, the parents remain liable; with it, the liability is removed.

Professional Perspectives

Professionals such as divorce attorneys, estate planners, and financial advisors can play a crucial role in facilitating loan assumptions:

  • Divorce Attorneys: Can help clients retain their low mortgage rates while managing the transfer of property ownership during divorce.
  • Estate/Probate Attorneys: Can assist in planning for the transfer of property before death or settling estates among children, ensuring the preservation of favorable loan terms.
  • Financial Advisors: Can guide clients in various situations, including rental conversions and property transfers, to maximize financial benefits.

My Loan Assumption Plan

To assist both consumers and professionals, I have developed a comprehensive loan assumption plan. This plan provides detailed guidance on how to navigate loan assumptions effectively, ensuring that clients can retain their advantageous mortgage rates and achieve their financial goals. Whether you are a homeowner, attorney, or financial advisor, this plan offers valuable insights and practical steps to manage loan assumptions successfully.

Join Me at the Family Law Institute

I am excited to share that I will be presenting at the Colorado Bar Association Family Law Institute in Vail this August. My presentation will delve deeper into the topic of loan assumptions in divorce, providing actionable strategies for both couples and legal professionals. This is a fantastic opportunity to learn more about how to leverage loan assumptions to benefit your clients or your personal financial situation.

For more details about the event and to register, visit the Colorado Bar Association Family Law Institute website.


Stay Informed with Huettner Capital

Understanding loan assumptions can make a significant difference in managing divorce-related financial challenges. By exploring this option, you can retain your low mortgage rates and navigate property transfers more smoothly. For more information on loan assumptions and to access my loan assumption plan, contact Huettner Capital. We specialize in providing tailored financial solutions to meet your unique needs.

Don’t miss out on valuable insights that can help you or your clients make informed decisions. Reach out to Huettner Capital today and let us assist you in managing your financial future with confidence.

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