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For mortgage pros, the key sales and advisory point is that equity is easy to calculate, while the buyout only works if the remaining spouse can qualify alone.
A divorce refinance equity buyout starts with simple math, according to HousingWire’s Oct. 14 report: the home’s appraised value minus the current mortgage balance establishes the equity position. But the article’s bigger point for loan officers is more practical than mathematical — the actual buyout depends on whether the spouse keeping the home can qualify for the new loan on their own.
That matters because divorce clients often come into the conversation thinking the equity split is the hard part. In the mortgage file, the harder question is usually whether one borrower can carry the refinance, pay off the existing mortgage, and potentially access enough cash or proceeds to complete the settlement.