Guide
Refinancing after divorce: buying out a spouse
To keep the house, you typically refinance into a new loan in your name alone that pays off the old mortgage and your spouse's share of equity. On a $450,000 home with $220,000 owed, a 50% buyout is $115,000, making the new loan $335,000 at about $2,254 a month at 7.11%.
Last reviewed November 13, 2026 · Examples use this week's rates
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Why refinance at all
A divorce decree can assign the house to one spouse, but it doesn't change who owes the mortgage. Both borrowers stay liable until the loan is paid off or the lender releases one of them. A refinance pays off the joint loan and replaces it with one in a single name.
Calculating the buyout
Equity is the current value minus what's owed. The departing spouse's share — set by your settlement — times that equity is the buyout. Some settlements offset part of the buyout with other assets, such as retirement accounts, which reduces how much needs to be borrowed.
Qualifying on one income
The lender will evaluate your income, debts and credit on your own. Some lenders may count documented support payments as income. The new loan-to-value also matters: above 80%, expect mortgage insurance on a conventional loan, and lenders cap total borrowing.
Get the right advice
This is a legal and financial event. Your attorney handles the settlement terms; a licensed lender can tell you how they treat an equity buyout. Our calculator helps you understand the numbers before those conversations.
Worked example at this week's rates
- Equity $230,000; buyout $115,000; new loan $335,000 (74.4% LTV); new payment $2,254; estimated closing costs $6,700.
Rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Closing costs are estimated at 2% unless stated, and payments are principal and interest only.
Run your own numbers
Use the Divorce buyout refinance calculator with your balance, rate and costs.
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
- Can I keep the house after divorce?
- Often, if you can qualify for a new loan on your own that covers the existing mortgage and the agreed buyout.
- Does my ex stay on the mortgage if they're off the title?
- Yes, until the loan is refinanced or the lender releases them.
- How is equity split?
- Your settlement or court order sets it. The calculator lets you enter any percentage.
- What if I can't afford the full buyout?
- Options can include offsetting with other assets or a payment plan, which your attorney can advise on.
- Is this legal advice?
- No. It's an estimate to help you prepare.