Divorced homeowners cling to low mortgage rates amid heartbreak
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Illustration: Maura Losch/Axios
It's not just the exes causing heartbreak for divorcing Pennsylvanians —homeowners nationwide are reluctant to part with their low mortgage rates.
State of play: Some couples who split up are continuing to live together to blunt the financial blow of nearly 7% mortgages, even if it means one of them moving into the basement, MarketWatch reports.
Between the lines: For many a recent divorcee, refinancing the house or buying a new one could send the monthly mortgage payment soaring, according to the Divorce Lending Association, Axios' Sami Sparber writes.
- Tapping into equity to buy out the former spouse from their share isn't cheap, either.
Zoom in: Marriages in Pennsylvania and Philly outpace divorces.
- The Commonwealth ranked 31st in the nation in marriages per 1,000 people compared with 41st for divorces.
- Meanwhile, Philly had more than 8,400 marriages and more than 2,000 divorces and annulments in 2022, per state health data.
What's next: Assumable mortgage platforms like Roam and AssumeList aim to expand as homebuyers look for ways to secure lower-rate loans.
- Mortgage assumptions, where buyers can take over existing home loans and interest rates, are a rare but growing way to get cheaper loans.
- Shoppers in areas where a high share of homeowners hold government-backed mortgages are most likely to see listings offer assumptions, says Realtor.com analyst Hannah Jones, who notes most conventional mortgages aren't assumable.