Top Three Mortgage Refinance Lenders for People Going Through Divorce

Going through a divorce is difficult and painful at best. Everything changes, and two incomes together become two incomes trying suddenly to support two families separately. This can be devastating to many people financially, and it can take years to recover from the fall out. One of the ways that people going through a divorce can try to help themselves is by refinancing the mortgage. This often needs to be done anyway, as the party keeping the house will become solely responsible for paying for the mortgage. Refinancing will be necessary in order to get the other person's name off the paperwork. Finding a really good deal on a mortgage refinancing can help people start getting back on track financially right away. Ask the following questions when searching for the right mortgage refinance lenders for people going through divorce.

What are some of the best lenders to work with?

Because of the current state of the real estate market, banks are competing with each other to offer competitive rates. Among the top lenders are Lendingtree, J.C. Wentworth and Quicken Loans. They will respond quickly and try to help you out. 

What is a current good interest rate?

Interest rates fluctuate a lot over the years depending on many factors, such as government controls and the market. The rates used to be much higher, but now someone with good credit may be able to get a mortgage for as little as 3.75% APR for a 15 year fixed rate mortgage. Anyone refinancing should see what deal is the best. 

Does it make a difference what kind of property is being refinanced?

It can make a difference whether a home is a house or a condominium, or how a person has been using the home. People can probably get more discounts for a home which are simply a primary residence for themselves and their families. 

Can people get cash back when they refinance?

One of the things that sometimes happens is that people may have to pay off some bills as part of the divorce settlement. Extra cash could come in very handy. LendingTree and other lenders like QuickenLoans and Kendall may be able to offer cash back as part of the negotiation, if there is principal on the house. 

What are some kinds of government loans that cover homes?

FHA loans are issued by private banks and lending institutions but they are guaranteed by the federal government so they have lower risk for the lenders. Someone who qualifies may be able to pay as little as 3.5% down. Veterans Affairs loans offer even better deals, for veterans of the armed forces. USDA loans help people in rural areas.

Is it better to get fixed or adjustable interest rates?

A fixed rate offers predictably and stability, but would keep the borrower from taking advantage of dropping interest rates. Adjustable rate mortgages change with a benchmark rate, like the prime rate. These can be great if the market is good but a disaster if the market goes the wrong way.

Are there other kinds of payment plans?

There are nontraditional interest plans which offer the advantages and disadvantages of both. For instance, a hybrid ARM may start out with a fixed rate for five years but then convert to am adjustable rate. Some mortgages only require interest payments for a specified period, while others offer a plan with more flexible terms yet.

Why does the property need to be evaluated again?

Even with a refinance, the property will need to be appraised and inspected. Just like with the original mortgage, the property is the loan collateral so the lender must know how much it is worth. These expenses will probably need to be paid by the one refinancing.

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