Member of the Colorado Bar Association

Board Member of
the Colorado Collaborative Divorce Professionals

5/5

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!

Refinancing Your Home After a Divorce: What You Need to Know

By Todd Huettner

As you’re well aware, divorce brings its own set of challenges with one of the toughest challenges being sorting out what happens with the family home. If you’re considering refinancing the home in just one name as part of moving on, this guide is for you. We’ll walk you through the key aspects of refinancing after divorce – from choosing the right refinancing path to understanding its financial implications.

 

With Huettner Capital by your side, you’ll have the guidance of Colorado’s divorce mortgage experts. We’re here to offer personalized solutions and support, with every layer of your situation in mind. 

 

 

Understanding Your Refinancing Options

 

Refinancing after a divorce involves replacing your current mortgage with a new one, typically in the name of the spouse who will retain ownership of the home. This process can help in managing the financial separation and in adjusting the mortgage to better suit one’s solo income. It’s crucial to assess your financial situation thoroughly before deciding on this route, as refinancing involves credit checks, potential changes in interest rates, and additional fees.

 

It’s also important to consider the timing of your refinance. Ideally, this should be done as part of your divorce agreement to avoid any complications. Working with a mortgage advisor who specializes in post-divorce refinancing can help you understand the best options for your situation, whether that’s a cash-out refinance to buy out your ex-spouse’s share or adjusting the terms of your loan to reduce monthly payments.

 

Eligibility and Requirements

 

Before you can refinance your home, you’ll need to prove your financial ability to take on the new mortgage independently. This means providing evidence of a stable income, a good credit score, and the ability to manage the ongoing mortgage payments on your own. Lenders will also look into your debt-to-income ratio to ensure you’re not taking on more than you can handle.

 

The divorce decree plays a significant role in the refinancing process. It should clearly state who will keep the home and under what conditions. If you’re required to buy out your ex-spouse’s share, the terms of this agreement will need to be factored into the refinancing application. It’s crucial to have all your financial documents in order, including your divorce decree, to streamline the process.

 

3 Reasons Why > You Cannot Wait to Refinance After a Divorce

 

The Impact on Your Finances

 

Refinancing your home after a divorce can have significant financial implications. Firstly, it may affect your credit score. Taking on a new mortgage in your name means assuming full responsibility for the debt, which can impact your credit utilization ratio. On the other hand, successfully managing the new mortgage can have a positive effect on your credit score over time.

 

Another consideration is the potential change in interest rates. Depending on the market conditions and your creditworthiness, you might secure a lower interest rate than your original mortgage, which can lead to savings in the long term. However, it’s also possible that rates have increased, or your financial situation might lead to a higher rate, which could make the mortgage more expensive.

 

Preparing for the Refinance Process

 

Getting ready to refinance your home after a divorce requires careful preparation. Start by gathering all necessary financial documents, such as your most recent tax returns, pay stubs, bank statements, and your divorce decree. These will be crucial in demonstrating your financial stability and eligibility for a new mortgage.

 

You should also take the time to research potential lenders and compare offers. Not all lenders have the same requirements or offer the same rates, so it pays to shop around. Consider working with a mortgage broker who can help you find the best deal and guide you through the application process, ensuring that you have all the necessary information and documentation.

 

 

Let’s Work Together to Refinance Your Home

 

Refinancing your home during or after a divorce is not just a tough financial decision but an emotional one as well. It marks a significant change in your life and the start of a new chapter. While the process can be challenging, it’s also an opportunity to reassess your finances and make positive changes that reflect your new situation.

 

Huettner Capital is committed to supporting you through this transition. Our team is here to offer personalized advice and guide you through the process of refinancing your home after a divorce. By collaborating with us, you can make informed decisions that are in your best interest, both financially and emotionally. Ready to get started? Give us a call. 

Our Latest Insights

Can I Buy a Home in Colorado? First-Time Home Buying Made Easy

Thinking about buying your first home but worried it might be too complicated? You’re not alone. Many first-time buyers in Colorado feel overwhelmed by the idea of navigating real estate markets and mortgage details. That’s where we come in. At Huettner Capital, we specialize in making the home buying process

Read More

Joint Debt After Divorce: Who Pays What?

Navigating the financial aftermath of a divorce is often as complex as managing the emotional toll, especially when it comes to joint debt. At Huettner Capital, we understand that redefining your financial obligations alongside your personal life is crucial. Whether it’s mortgages, car loans, or credit card debts, knowing who

Read More

Refinancing Your Home After a Divorce: What You Need to Know

Refinancing Your Home After a Divorce: What You Need to Know By Todd Huettner As you’re well aware, divorce brings its own set of challenges with one of the toughest challenges being sorting out what happens with the family home. If you’re considering refinancing the home in just one name as

Read More

The Importance of Specialized Knowledge in Divorce Financing

The Importance of Specialized Knowledge in Divorce Financing By Todd Huettner When it comes to divorce financing it requires expertise and personalized attention to detail. This is where Huettner Capital sets itself apart. With a focus on both residential and commercial loans for nearly every situation, we go beyond the traditional

Read More
the-divorce-hour

The Divorce Hour with Ilyssa Panitz

Check out our own Todd Huettner on Ilyssa Panitz’s podcast The Divorce Hour explaining why couples want alternatives to the traditional destructive divorce process and the options to stay in control of the process, professionals, and their agreements.

Read More
MicrosoftTeams image 14

6 Homebuying and Mortgage Tips for Retirees

Buying a new home is a logistical and financial challenge no matter your age (or how many times you’ve done it). But our mortgage and lending system can be especially challenging for retirees to navigate, simply because lenders prioritize income.

Read More