Will it hurt my credit when my husband refinances the house to get it out of my name?

Chance
My husband and I are seperated and getting divorced soon. There are no kids involved. I am currently living in my home, but we are discussing letting him have the house so I can start new somewhere else. Our home loan company said they can refinance the house into his name only and my name will be removed, which is what we both want. We've only owned the home for a little over a year and I've always paid the payments on time. It's an $80, 000 home and we currently owe $78, 500. Will this hurt my credit when the house is taken out of my name? How long before I can apply for a different home loan somewhere else?

Hiedi
It is the best thing to do since you will no longer have any control over when or if the payments would be made. And late payments could hurt your credit very badly.I would go see a local loan officer about any restrictions on getting a new loan of the type you wish to get. The rules on obtaining loans are changing very quickly every day- and of course your exact location and circumstances will make a lot of difference.

Quintin
no it will not hurt your credit at all. In fact it is the best thing to do as there is little or no equity in the home now. You can purchase once satisfaction is made on the old home using solely your income and credit but you will not get the $8000 tax credit as you are not a first time buyer

Mickey
Actually it will improve your credit score as that amount of debt will no longer be listed in your name changing your debt to income ratio

Alberta
No, it won't hurt your credit. There will just no longer be an active (open) mortgage loan on your record. The old joint loan that was refinanced will show as "paid."