Ryan Family Law P.C. Ryan Family Law P.C.
Elgin, Illinois 847-586-0161
Call Today! 847-586-0161

Arrange A Free, Half-Hour Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Assumable mortgage misconceptions related to a divorce

One of the most common assets sought after during an Illinois divorce is the family home. If a decision is made that one former spouse will retain the home, the next step is to determine how to handle the mortgage. Possibilities include retaining the original joint mortgage, refinancing the mortgage and loan assumption.

The mortgage loan assumption process tends to resort in the most confusion for divorcing couples. By assuming a mortgage, the partner who's keeping the home will take on the payment responsibilities without the need to refinance. Meanwhile, the other spouse is removed from the loan. If loan terms are favorable, assumption fees may end up being less than costs associated with refinancing. However, not all home loans have an assumable option.

Even with higher up-front costs, refinancing may produce better longer-term results in line with a soon-to-be ex's goals. There's also the misconception that assuming a loan involves little more than signing papers. In reality, lenders usually require proof that someone assuming a loan will be able to make payments without assistance from an ex-spouse. There's also the time factor. Refinancing usually takes about a month while the process of assuming a mortgage may take up to six months. Interest rates may also increase during this period.

During the divorce process, a family law attorney may help a soon-to-be ex obtain the original promissory note to determine if mortgage assumption is possible. Even if it is, a lawyer might recommend seeking input from a financial adviser or accountant to determine if fighting for the marital home makes sense financially.

No Comments

Leave a comment
Comment Information

Arrange A Free, Half-Hour Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact

Ryan Family Law P.C.
2250 Point Blvd. Suite 107
Elgin, IL 60123

Phone: 847-586-0161
Elgin Law Office Map

Our Hours:
Friday 9AM–12PM
Monday 9AM–5PM
Tuesday 9AM–5PM
Wednesday 9AM–5PM
Thursday 9AM–5PM

Review Us