The Truth About How to Assume A Mortgage After Divorce

You've spent months negotiating who gets the house, only to discover that the mortgage you “thought” was assumable, isn’t. Now what? Stacey Ellison, a Certified Divorce Lending Professional with over 30 years in the mortgage industry, breaks down what really happens when one spouse wants to keep the house and assume the mortgage that’s currently in both names.

Not every mortgage is assumable, and even those that are assumable usually require lender approval to do so. In other words, if your mortgage company agrees to let you assume the mortgage, you can. If they don’t, you can’t … and there’s not much you can do about it if you get denied.

What’s more, if you assume your existing mortgage, you have to find a different way to buy out your spouse’s equity. You can’t take a dime out of the equity in your home AND assume your current mortgage.

The good news is that keeping your low-interest rate mortgage isn't always the financial win it appears to be. The math around post-divorce tax filing changes can actually make refinancing at a higher interest rate more financially beneficial for you than keeping the mortgage you have.

The bottom line is that mortgage assumptions are complicated. This podcast episode will help you cut through the fog so you can create a solid financial future.

About Stacey Ellison

Stacey Ellison is a Certified Divorce Lending Professional and Divorce Mortgage Planner with over 30 years of experience in the mortgage industry. Since 2020, she has used her specialized training to help individuals navigate the complex financial decisions surrounding a home during a divorce. Working with other divorce professionals, Stacey provides strategic guidance on home equity, mortgage qualification, and housing goals. Her goal is to help divorcing homeowners make sound financial choices that support their long-term stability.

Connect with Stacey

You can connect with Stacey on LinkedIn at Stacey Ellison and on Facebook at Stacey Ellison: Certified Divorce Lending Professional and follow her on Instagram at Divorce Mortgage Solutions. To find out how to work with Stacey visit her website at Divorce Mortgage Solutions.

Karen Covy is a Divorce Coach and Consultant, Lawyer, Author, and Speaker who is dedicated to helping people make the best decisions possible for themselves, their families, and their future - especially in stressful times. You can check out Karen's videos on YouTube.

You can connect with Karen on LinkedIn, Facebook, Instagram, Twitter, and on her own website at karencovy.com.