I'm terrible at math. I think I got the basics of how to arrive at the net equity that is in the matrimonial home, however, it's the refinancing that's causing smoke to come out of my ears!
I'm really hoping there is someone here, part of the collective, that can walk me through refinancing 101.
Here are the particulars:
$450,000 (Value of Home)
-$250,000 (outstanding mortgage)
-$10,000 (mortgage penalty)
-$20,000 (down payment gift that is staying with husband)
-$10,000 (wife's credit card)
-$4,000 (husband's credit card)
=$156,000 Total Net Equity
=$156,000/2=$78,000=Wife's Share
What am I missing here? I know there's something.
Note: The credit card debt is from the date of separation, which is over 2 years ago. The husband has paid off the husband's CC debt since then. Should it be taken out, or left in? These are the amounts that the husband and wife agree as being "matrimonial debt" at the separation date.
How does one go on to then calculate what the remortgaged amount would be?
$250,000 (outstanding mortgage on matrimonial home)
+$78,000 (wife's buy out amount)
+ ???????? (this is where the smoke comes out of ears and I curl into the fetal position)
If the wife's $10,000 is being wiped out, does this $10,000 get rolled into the remortgaged amount?
How is it recognized that the wife is responsible for half of the husband's credit card debt, just as the husband is responsible for half of the wife's credit card debt?
Also, the mortgage penalty; the husband will have to pay this, too, with the re-mortgaging. The husband and wife should split this, but how do you get the numbers to work, to reflect that the husband and wife are each resposible for half of the penalty?
ARGHHHH!!! MATH!!!!!
I'm really hoping there is someone here, part of the collective, that can walk me through refinancing 101.
Here are the particulars:
- The husband wishes to buy the wife out the matrimonial home by remortgaging
- Home appraised at $450,000
- Outstanding mortgage remaining: $250,000
- Mortgage Penalty: $10,000
- Down payment gift that husband received from parents: $20,000 (note:wife is allowing husband to retain this in exchange for another asset worth $20,000)
- Wife's matrimonial debt at date of separation: $10,000 in CC
- Husband's matrimonial debt at date of separation: $4,000 in CC
- Would like to eliminate matrimonial debt upon refinancing
$450,000 (Value of Home)
-$250,000 (outstanding mortgage)
-$10,000 (mortgage penalty)
-$20,000 (down payment gift that is staying with husband)
-$10,000 (wife's credit card)
-$4,000 (husband's credit card)
=$156,000 Total Net Equity
=$156,000/2=$78,000=Wife's Share
What am I missing here? I know there's something.
Note: The credit card debt is from the date of separation, which is over 2 years ago. The husband has paid off the husband's CC debt since then. Should it be taken out, or left in? These are the amounts that the husband and wife agree as being "matrimonial debt" at the separation date.
How does one go on to then calculate what the remortgaged amount would be?
$250,000 (outstanding mortgage on matrimonial home)
+$78,000 (wife's buy out amount)
+ ???????? (this is where the smoke comes out of ears and I curl into the fetal position)
If the wife's $10,000 is being wiped out, does this $10,000 get rolled into the remortgaged amount?
How is it recognized that the wife is responsible for half of the husband's credit card debt, just as the husband is responsible for half of the wife's credit card debt?
Also, the mortgage penalty; the husband will have to pay this, too, with the re-mortgaging. The husband and wife should split this, but how do you get the numbers to work, to reflect that the husband and wife are each resposible for half of the penalty?
ARGHHHH!!! MATH!!!!!
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