My house is in both my name and my husbands. We are getting divorced. I am keeping the house, but need to reduce the payments?

I owe $180,000. Bought for 237.000. Interest 3.5% 30 year term/ purchased in 2013. I make $33,000 a year plus child support for one child. I'm never late, but each month it's a struggle and not hardly anything left after bills. Anyway to reduce my payments? Payment is $1400/month (taxes $5300, insurance $986 escrowed into mortgage)

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Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Before making any decisions or incurring any out-of-pocket expenses on this, fist thing to do is wait for the divorce settlement to be finalized. Get with your attorney on having your former spouse make the payments (alimony). You may also (at no cost) sit down with a lender to discuss options to lower your payments (an appraisal may be needed).

Also, you may have a typo with taxes at $5300 and Insurance at $986. We need to dive into this more.

We need more info to get a complete picture on your financial situation:
1). Where are you financially?
2). Where do you need to be financially?

Using only what you have provided, you may consider moving into a lower priced home and renting (Value proposition). Keep in mind how this may affect your divorce settlement. By lowering your expenses, this may improve your lifestyle. Keep in mind that we strive to have our clients debt free within 3 yrs or to be able to pay off their debt from cash flows within 3 yrs.

We invite you and/or your legal advisor to contact us directly to discuss your options in greater detail. No obligation. We work with several lenders, Attorneys, etc., and we do not charge an hourly or referral fee.

It's not what you make, It's what you keep that determines your lifestyle.

| 04.01.16 @ 22:08
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:30
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