Can I get soon to be exH off the mortgage without refi if I make more than we made combined when we took the loan?

[Anonymous]

We are 10 years into a mortgage loan that we originally took out in 2015 when we make $100k total HHI. The rate is 2.95%.

I now make $140k by myself. Is there anyway to pitch to our lender that I am in a better position solo than we were joint at the time of approval and therefore not a liability?

If I have to refi from a 2.95% to 7% rate, I can't afford the house and will have to move my kids from their forever home into a 2bd/1ba apartment and change their schools which I really, really do not want to do.

[Anonymous]

OP here- if it matters at all my credit score is 820

[Anonymous]

Doubt it. Sorry.

[Anonymous]

Call your lender. If you have a chunk of cash, maybe you could do it as part of a loan recast. But, lenders right now are just looking for reasons to drop their low interest loans for their balance sheet, so they might not be willing to think outside the box and work with you. But obviously, it's worth trying to keep that low rate.

If you can't do it, try to buy some time with your spouse before you have to drop him from the mortgage. Doubt rates get back down to 2.95% but they probably will drop from current rates with Trump appointees taking over the fed board.

[Anonymous]

My understanding is that some mortgage companies/some states will allow you to remove one party when there is a divorce. Highly variable and you have to check with the mortgage company.

[Anonymous]

Might be possible if it's assumable- generally FHA/VA loans are assumable. But very unlikely a conventional one is.

Might be able to write a removal of mortgage responsibility into the divorce decree? Ex would still be on the loan then, but would have the legal ability to push any obligations back on to you per the decree/agreement. But would still have personal credit risk.

[Anonymous]

Anonymous wrote:Call your lender. If you have a chunk of cash, maybe you could do it as part of a loan recast. But, lenders right now are just looking for reasons to drop their low interest loans for their balance sheet, so they might not be willing to think outside the box and work with you. But obviously, it's worth trying to keep that low rate.

If you can't do it, try to buy some time with your spouse before you have to drop him from the mortgage. Doubt rates get back down to 2.95% but they probably will drop from current rates with Trump appointees taking over the fed board.

Fed doesn't control long term rates that drive mortgage rates.

[Anonymous]

Anonymous wrote:Might be possible if it's assumable- generally FHA/VA loans are assumable. But very unlikely a conventional one is.

Might be able to write a removal of mortgage responsibility into the divorce decree? Ex would still be on the loan then, but would have the legal ability to push any obligations back on to you per the decree/agreement. But would still have personal credit risk.

You would have to give up something pretty big for him to agree to this. Basically the lender can still come after him but he can then come after OP. Of course, if OP defaults on the loan odds are she doesn't have any money so its a worthless remedy. It will also impact his DTI if he wants to buy a house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Might be possible if it's assumable- generally FHA/VA loans are assumable. But very unlikely a conventional one is.

Might be able to write a removal of mortgage responsibility into the divorce decree? Ex would still be on the loan then, but would have the legal ability to push any obligations back on to you per the decree/agreement. But would still have personal credit risk.

You would have to give up something pretty big for him to agree to this. Basically the lender can still come after him but he can then come after OP. Of course, if OP defaults on the loan odds are she doesn't have any money so its a worthless remedy. It will also impact his DTI if he wants to buy a house.

Agreed, it's a long shot, but worth asking, depending on OPs situation.

[Anonymous]

everything's negotiable in life

[Anonymous]

Very unlikely they will let you do this without a full refinance. One person is still riskier than two people. Plus it’s an excuse for them to bring your rate to market.

[Anonymous]

Anonymous wrote:We are 10 years into a mortgage loan that we originally took out in 2015 when we make $100k total HHI. The rate is 2.95%.

I now make $140k by myself. Is there anyway to pitch to our lender that I am in a better position solo than we were joint at the time of approval and therefore not a liability?

If I have to refi from a 2.95% to 7% rate, I can't afford the house and will have to move my kids from their forever home into a 2bd/1ba apartment and change their schools which I really, really do not want to do.

No. You will have to refinance.