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What Kind of Loan Do I Need to Pay Off Husband in Divorce? – Joann

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Divorce and house paid off what loan do i need to pay half back to husband.

Hi, I am getting a divorce but I will keep the house. The house is paid off but I will have to pay spouse half of value of house. What loan would be best to get. The house should stand good for loan also. Looking to borrow around 40,000.

Thanks

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4 Comments

  • Hello Friend,

    The best opyion for you would be to re-fi your house if it’s paid. Cheaper interest rate.
    Goodluck!

  • With decent credit you should be good to go on a refi.  Rates are extra low now, and like msullivan said, go for a 10 or 15 year loan – generally only $80 – $200 per month more, but paid in half the time.

    Good luck.

  • Joann,

    I would suggest refinancing the home for the amount you owe your ex. That will assure that you have a clean title (the lender would otherwise insist on your ex’s signature). That also provides you with tax benefits and you are likely to get a 4% APR which is rather inexpensive financing. It would be wise to to get a 10 or 15 year mortgage if you can afford it. The shorter the mortgage period the less the interest cost.

    I am assuming from your question that you can borrow and have good credit and a reasonable income. You will have to qualify for any type of loan.

    Good Luck!

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