Mortgage Refinance After Divorce Calculator
Find out if you can qualify for a solo mortgage after divorce, estimate your new monthly payment, and see how much cash you can pull out for a spouse buyout.
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Qualification Assessment
Likely Qualifies
Housing Ratio20.7% (max 28%)
Debt-to-Income (DTI)29.1% (max 43%)
Loan-to-Value (LTV)45.8%
Max Housing Payment$1,983/mo
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Advanced Analysis
Qualification Check · Rate by Credit Score · Rent vs Own
Your Financial Profile
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Refinance Qualification Check
Likely Qualifies
Total Qualifying Income$9,383/mo
W-2 Income$7,083/mo
Alimony Income$1,500/mo
Child Support Income$800/mo
Monthly Mortgage P&I$2,183/mo
Total PITI$2,763/mo
Front-End Ratio29.4% (max 31%)
Back-End DTI36.4% (max 43%)
LTV66.7%
Credit Score720
Alimony as Income: Lenders require 3+ years remaining and 6+ months of payment history to count alimony toward qualifying income. Have your divorce decree and bank statements ready.
Professional Model
Full DTI Analysis · Cash-Out Analysis · 10-Year Rent vs Own
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Full DTI Qualification Analysis
Does Not Qualify
Total Qualifying Income$8,550/mo
Housing Payment (PITI + HOA)$2,763/mo
All Other Debts$900/mo
Total Obligations$3,663/mo
Front-End DTI32.3% (limit 31%)
Back-End DTI42.8% (limit 43%)
LTV66.7%
PMI RequiredNone
Refinancing a Mortgage After Divorce
When one spouse keeps the marital home, the mortgage typically must be refinanced into that spouse's name alone. This removes the departing spouse's liability and replaces the joint loan with a single-borrower loan based solely on your income and credit.
The Three Hurdles
- Income qualification: Your housing payment should be under 28% of gross monthly income.
- Debt-to-income (DTI): All monthly debts combined should be under 43% of gross income (FHA allows up to 57%).
- Loan-to-value (LTV): Conventional loans typically require under 80% LTV to avoid PMI; FHA allows up to 96.5%.
Cash-Out Refinance in Divorce
A cash-out refinance lets you borrow more than you currently owe, using the equity to pay your spouse the buyout amount. Most lenders cap cash-out refis at 80% of the home's value (conventional) or 80–85% (FHA/VA in limited cases).
The Formula
Monthly Payment = Loan Balance × [r(1+r)^n / ((1+r)^n − 1)]
where r = annual rate ÷ 12, n = loan term in months
Housing Ratio = Monthly Payment ÷ Gross Monthly Income
DTI = (Monthly Payment + Other Debts) ÷ Gross Monthly Income
LTV = Loan Balance ÷ Home Value × 100
Max Cash-Out = Home Value × 0.80 − Current Mortgage Balance
Net Cash Proceeds = Cash-Out Amount − Closing Costs
where r = annual rate ÷ 12, n = loan term in months
Housing Ratio = Monthly Payment ÷ Gross Monthly Income
DTI = (Monthly Payment + Other Debts) ÷ Gross Monthly Income
LTV = Loan Balance ÷ Home Value × 100
Max Cash-Out = Home Value × 0.80 − Current Mortgage Balance
Net Cash Proceeds = Cash-Out Amount − Closing Costs
Worked Example
Example: Jennifer's Solo Refinance
Jennifer earns $85,000/yr ($7,083/mo). The home is worth $480,000 with a $220,000 balance. She wants to refinance at 7% for 30 years.
New Monthly Payment$1,464/mo
Housing Ratio20.7% (under 28%)
DTI (with $600 other debts)29.1% (under 43%)
LTV45.8% (excellent)
VerdictLikely Qualifies
Jennifer qualifies comfortably. If she also wanted to buy out her spouse ($130,000), the new balance would be $350,000, raising her payment to $2,328/mo and DTI to 41.6% — still under 43%.
Frequently Asked Questions
Most divorce agreements require refinancing within 6–12 months of the final decree. If you can't qualify in time, you may request an extension, but the departing spouse can petition the court to force a sale if you're unable to remove them from the loan within the agreed timeframe.
Yes, but only if it's documented in a divorce decree or separation agreement and has a remaining term of at least 3 years. Lenders will typically use alimony as qualifying income when you can provide 6–12 months of payment history (bank statements showing receipt) and the court order specifying the amount and duration.
Divorce often impacts credit — joint accounts may have missed payments, or utilization spikes from legal costs. Before refinancing, dispute any errors, pay down balances to below 30% utilization, and avoid opening new accounts. Rebuilding credit for 6–12 months before refinancing can save thousands in rate premiums.
Yes. Child support income counts toward mortgage qualification using the same requirements as alimony: documented in a court order, has at least 3 years remaining, and you can show consistent payment history. Fannie Mae and FHA both allow child support as qualifying income.
If your current mortgage has a rate significantly below today's rates (e.g., a 3% loan from 2021), a mortgage assumption lets you keep that rate — a huge financial advantage. FHA, VA, and USDA loans are assumable. Conventional loans generally are not. The downside: you must qualify for the assumption and often still need cash to pay your spouse their equity.