UrbanBaby

09.03.19, 15:47 PM General Topics
13 replies

Need help getting out of a financial hole and need to pay soon to be ex-dh money from equity in our apt. Have $25k in cc debt, a $200k mortgage at 5% (ARM) with about $650k in equity. What should I do? Refi and take money out to pay cc debt and give some to dh, right? [ Reply | Watch | Flag ]
General Topics 09.03.19, 03:47 PM Flag

Dear UrbanBaby community,

Thank you so much for being a valued member of the UrbanBaby community. We wanted to inform you that we are shutting down the site on July 6th. We are grateful for your participation and support that has helped make UrbanBaby such an important resource to parents for many years.

If you have any questions or concerns, you can email us at urbanbaby-support@cbsinteractive.com.

Thanks so much,

UrbanBaby Support

Seems like your best choice with current mortgage rates. See if you can lock in a fixed rate. [ Reply | More

]
General Topics 09.03.19, 03:48 PM Flag

I would actually do a 10/1 IO if I were OP. Assuming good credit etc. [ Reply | More

]
General Topics 09.03.19, 06:41 PM Flag

Mortgage lender here (yes, I'm a real mortgage lender). So many things to consider: condo or coop? Are you both on title now? If coop, do you need to go through whole board approval to carry loan + maintenance on your own? Will you be approved by said coop? How long do you plan on holding on to apartment? If you did a cash out refinance to pay him off, could you handle the new payments? For how long? [ Reply | More

]
General Topics 09.03.19, 03:51 PM Flag

op: thanks for responding. it is a condo, we are both on title. I a have been sole and/or primary breadwinner for duration of marriage and have made all mortgage and maintenance payments. I have not looked at rates yet so I have no idea what the monthly payment would look like. Right now I pay $3k for mortgage an condo fee combined. [ Reply | More

]
General Topics 09.03.19, 04:10 PM Flag

OK good to know. How much do you have to give him? Assuming you're in NYC, you will pay the 1.80% NYS mortgage tax on the "new money" (and possibly your existing balance) unless you can do a CEMA (consolidation extension modification agreement) to avoid paying the tax on your $200k balance. There's no other way you could give him the money (over time perhaps)? You can put the closing costs (including mortgage tax) into your new loan but you're still paying it. You might want to look at an IO loan if the new payments are onerous. If you are in a bonus situation, you can put chunks of money toward the loan and the payment will drop based on what you owe at any point in time. If your condo is in Nassau or Suffolk, tax is .80%. [ Reply | More

]
General Topics 09.03.19, 04:15 PM Flag

There's a slight benefit to staying within conforming loan limit of $484k but it's usually only 1/8% if that. Sounds like you have to give him $325k? [ Reply | More

]
General Topics 09.03.19, 04:20 PM Flag

Does she have to give him half of the equity? Isn't NY an equitable distribution state (what's fair, not necessarily 50/50). I think the percentage you give him of equity depends on the length of marriage, and you might get some credit for all of your equity payments since it sounds like he didn't contribute to the equity at all. [ Reply | More

]
General Topics 09.03.19, 04:36 PM Flag

Right that's why I asked what she had to give him (I'm not saying it is 50% -- just using that as an example). [ Reply | More

]
General Topics 09.03.19, 04:40 PM Flag

Last tip for OP: if your new loan is just enough to pay off $200k mortgage and what you owe him, lenders can call it a "rate and term" refinance (vs cash out refinance which often has higher rates) as long as you (the borrower) are not walking away with cash (which you wouldn't be -- loan proceeds would be paid to your bank and your ex -- no money to you). But once you add in the $25k in cc debt, they have to call it a cash out refi. Just ask and compare the difference in rates and see if it's worth it. [ Reply | More

]
General Topics 09.03.19, 05:44 PM Flag

If mortgage is old a CEMA can sometimes not work out. Happened to me. But if you refi with the same bank highly likely. Try credit unions. Their rates are super low. You can probably be appraised pretty high. They will let you cash out and not penalize you if the LTV is low enough, if it is not they will charge you an extra eighth or quarter point. Maybe not worth it for 25k. Do a 10/1 IO. [ Reply | More

]
General Topics 09.03.19, 06:47 PM Flag

This is all good advice (mortgage lender here). [ Reply | More

]
General Topics 09.03.19, 07:38 PM Flag

It makes sense to refi since you would get a lower and locked in rate. Lender above is right that it could be more complicated. [ Reply | More

]
General Topics 09.03.19, 04:11 PM Flag

Check out Dave Ramsay's plan for getting out of debt. [ Reply | More

]
General Topics 09.03.19, 05:11 PM Flag