3 Tips for Buying Out a Mortgage from Your Spouse

The process of buying out a mortgage from a spouse or former spouse is not something that anyone wants to go through. However, during a divorce, this could be a necessary thing to do. Here are a few tips for buying out a mortgage from your spouse.

1. Determine the Value of the House

The first thing that you should do is determine the accurate value of the house. Until you have an accurate current value of the house, you cannot determine how much a payout should be. You should not estimate this number by yourself without any help from an outside source. There are a few different ways that you could potentially determine the value of your home. The most accurate way to determine the value of the house is to have it appraised. The only problem with using this method is that it is sometimes expensive. You could also contact a real estate agent and tell her that you are considering selling the house. She will be able to do a comparative market analysis for you that will give you an idea of what the house would sell for in today's real estate market. This option will be free, and as long as you are dealing with a competent real estate agent, it will give you a good idea of the house's value.

2. Determine the Buyout Amount

Once you have determined the accurate value of the house, you will be able to determine how much the buyout amount should be. The buyout amount will represent the amount of equity that belongs to your spouse. If the house were sold, this is the portion of the sale that would rightfully be your spouse's. In order to determine this amount, you can use some simple mathematical calculations. Take the current value of the house and subtract the mortgage balance from that number. This will provide you with the amount of equity that is shared between you and your spouse. Take that number and divide it by two. The number that you get from this calculation is the number that you will need to come up with for the buyout of your spouse.

3. Refinance

One way that you can buy out your spouse is to use a refinance. By refinancing the house, you will be able to get access to an amount of money that is equal to the current value of your home. You can take the money from the refinance and pay off your existing mortgage and give your spouse his or her portion of the equity. There may be some money left over for you to keep part of your equity, or you can choose not to borrow this amount. Once you refinance, you will be able to remove your spouse from the title to the property so that he or she will no longer have any rights to it.

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