You are using an older browser version. Please use a supported version for the best MSN experience.

6 things to know about refinancing a mortgage after a divorce

Bankrate Logo By Marcie Geffner of Bankrate | Slide 3 of 7: Many divorce settlements require the spouse who keeps the home to refinance to remove the other spouse from the loan.If your agreement has this requirement, you’ll have to refinance, even if the new mortgage loan will cost you more than the existing mortgage. If your agreement doesn’t have this requirement, your spouse cannot force you to refinance.If your spouse signs a legal document to be removed from the title to the home, that does not remove him or her from the mortgage. The title and the mortgage debt are two separate issues.Your lender doesn’t sign your divorce agreement. That means the lender has no obligation to remove your spouse from your mortgage or allow you to refinance, even if your agreement with your spouse requires that you do so.If you’re required to refinance but you don’t do it, you might have to renegotiate the divorce agreement.

You may have no choice but to refi

Many divorce settlements require the spouse who keeps the home to refinance to remove the other spouse from the loan.

If your agreement has this requirement, you’ll have to refinance, even if the new mortgage loan will cost you more than the existing mortgage. If your agreement doesn’t have this requirement, your spouse cannot force you to refinance.

If your spouse signs a legal document to be removed from the title to the home, that does not remove him or her from the mortgage. The title and the mortgage debt are two separate issues.

Your lender doesn’t sign your divorce agreement. That means the lender has no obligation to remove your spouse from your mortgage or allow you to refinance, even if your agreement with your spouse requires that you do so.

If you’re required to refinance but you don’t do it, you might have to renegotiate the divorce agreement.

© Seb Oliver/Getty Images
image beaconimage beaconimage beacon