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  Dear
Dr. Don,
Please help! I am currently going through a divorce
(not my decision). Last year, my wife and I took advantage of the
low interest rates and refinanced our home and reduced the loan
term to 15 years. Only my income was used to qualify for the new
loan. It is likely that I will have the option of keeping the home
as my wife wants to move out.
Do you know if it is possible to convince my lender to remove my wife's
name from the mortgage and allow me to keep it with the original terms?
My wife has already applied for another loan and needs her name off
of the current mortgage. I have been told that I will need to refinance.
However, with the child support agreement, I don't appear to qualify
for a new mortgage.
Ironically, our mortgage payment is substantially
lower than any rental prices in my local area.
Here are my financial details: I gross approximately
$60,000 a year. I am obligated to pay $1,185 a month for child support
(three kids and my wife's only income is $600 a month from a disability).
When I use the online calculators and put in the monthly child support
obligation, most of them crap out and basically say I can't afford
anything. How am I to live after divorce?
-- Tim Transfer
 Dear
Tim,
You can ask the lender to take her name off the mortgage, but they're
under no obligation to do so. Even though you qualified for the
current mortgage without her income, your income ratios have changed
with the new monthly obligation to pay child support and the lender
may not be willing make the adjustment given your changing circumstances.
I don't mean to be insensitive, but is she your wife
or your ex-wife? If she's out there applying for mortgages and the
divorce isn't final, her mortgage could be considered a joint obligation
of the marriage even if that is no one's intent.
The divorce decree should speak to your obligation
to get her name off the note. If you're obligated, and you can't
qualify for a new 15-year fixed-rate mortgage, you'll need to consider
extending the loan term, moving to an adjustable-rate mortgage or
even an interest-only note.
Trying to hold on to the family home after a divorce
is always a challenge. It may not be your best decision. Look beyond
the mortgage payment when making the decision whether you should
stay in the home.
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