Dan and Cynthia were a couple in their early 50s. They had a marital home which they had refinanced when mortgage rates were super low. Cynthia wanted to keep the home and they hoped she wouldn’t lose their 2.8% interest rate. The problem was they were both on the mortgage and the deed.
Keeping the Marital Home with the Low Rate Mortgage
How We Helped
During the initial consultation, the CDFA discussed the options they had with regard to the marital home including loan assumptions, refinancing and the pros and cons of owning the home jointly after their divorce. Cynthia was referred to a mortgage professional who could help Cynthia understand her options and what income she would need to qualify for assumption or refinance.
Dan and Cynthia’s Success
Before mediation, Cynthia knew that she was able to qualify to assume the existing mortgage, what support would be necessary and the parameters required by the mortgage company. With the help of a CDFA and mediator, Dan and Cynthia were able to allocate the marital home to Cynthia and determine how to divide the remaining assets. Keeping the marital home with its low mortgage lowered Cynthia’s need for support from Dan. The CDFA’s analysis and guidance assured Cynthia that she would be able to afford and manage the home on her own.
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Mary Salisbury is a Certified Divorce Financial Analyst and a NC family mediator. Mary’s background includes a career as a financial advisor where she held securities licenses 6, 7, 63 and 65. She also formerly held the credentials of Certified Pension Consultant and Qualified Pension Administrator during a career in employee benefits. Mary graduated with degrees in Economics and Marine Affairs from the University of Miami, FL.