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Divorce Buyout Refinance Calculator
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Buyout amount
$115,000
At 74.4% LTV the new loan stays at or under 80% of the home's value.
No credit check to see options. Estimates use principal and interest only.
How this calculator works
When one spouse keeps the house after a divorce or separation, they often refinance to do two things at once: remove the other spouse from the mortgage and pay them their share of the equity. This calculator estimates both sides of that transaction.
Start with the home's current value and the mortgage balance. Equity is the difference. Enter the departing spouse's share of the equity as agreed in your settlement — often 50%, but it depends on your agreement. The buyout amount is that share of equity. The new loan is your current balance plus the buyout, and we show the new monthly payment at the rate and term you choose, plus the new loan-to-value (LTV).
LTV matters because it affects whether you'll pay mortgage insurance and which programs you qualify for. Above 80%, a conventional loan usually requires PMI, and lenders cap how much you can borrow against the home. If the full buyout pushes the LTV too high, a smaller cash buyout combined with other assets in the settlement may work better.
Lenders also look at whether you can qualify on your own income alone, since the departing spouse is coming off the loan. Some lenders treat a court-ordered equity buyout differently from an ordinary cash-out refinance, which can affect pricing and limits. Talk with your attorney about the settlement terms and with a licensed lender about how they treat the buyout. This calculator is an estimate, not legal or financial advice. Closing costs are estimated at 2% of the new loan amount and are not included in the loan.
Worked example at this week's rates
A $450,000 home with a $220,000 mortgage has $230,000 in equity. A 50% buyout is $115,000, so the new loan is $335,000 — 74.4% of the home's value. At this week's 7.11% 30-year average, the new payment is $2,254 a month.
PMMS is a national purchase-mortgage benchmark, not a refinance quote, so your own offer may be higher or lower.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- How is a divorce buyout calculated?
- Subtract the mortgage balance from the home's value to get equity, then multiply by the departing spouse's agreed share. The settlement agreement sets the share.
- Do I have to refinance to remove my ex from the mortgage?
- Usually. A divorce decree doesn't change who is liable on the loan; the lender must release the other borrower, which typically happens through a refinance.
- Can I qualify on my income alone?
- The lender will evaluate your income, debts and credit without your former spouse. Some lenders may consider documented support payments as income.
- What LTV do I need for a buyout refinance?
- Limits vary by program and lender. At or below 80% LTV, conventional loans typically avoid PMI.
- Is this legal advice?
- No. This is an estimate for planning. Talk to your attorney about settlement terms and to a licensed lender about loan options.
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