# Re-Fi Question



## UnluckyFool (Jun 27, 2010)

Howdy and happy memorial day to all.

My marriage is in ruins and the only thing keeping the wife together financially is the house. Thankfully no other debt or kids to deal with. My question today is centered around the house. I appreciate any assistance/feedback you might have.


*Paraphrased email from her to me ....*.

_I am hiring an appraiser to determine the house value. You will need to re-fi for 50% of the appraiser value and above any balance due. I want the house off of my credit report so I can purchase a new home._


The 50% thing is throwing me off. For simple math, let's assume we have a $100K mortgage, $10K equity and the house apprised for $100K. How does me re-financing of 50% cover the outstanding balance?

What am I missing here? This doesn't make sense to me.


Thank you,


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## rfAlaska (Jul 28, 2011)

What she wants is half the equity. For example .....

House appraises at $100,000
You owe $90,000 
Equity is $10,000

Split the equity 50/50 and you owe her $5,000

What she really wants you to do is refinance the whole house and cash out her equity. In the example above, you would refinance for $95,000, use $90,000 to pay off the original mortgage, pay her $5,000 and end up with a $95,000 mortgage.

If those are close to the real numbers, you may have trouble making that happen - getting a 95% mortgage isn't as easy as it once was. She might have to wait for her money and to buy another house.

The other alternative is to sell the house and split the balance after paying off the mortgage.

I hope that answers your question.


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## keko (Mar 21, 2012)

Don't forget the related fees to refinance. Most if not all the equity you gave as an example would disappear.
_Posted via Mobile Device_


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