Divorce Buyout Calculator
Work out what the departing party is owed, what the new loan would be, whether the loan-to-value still fits a program, and whether one income can carry the payment.
1. The buyout
Equity is the appraised value minus what is still owed. The split is set by your agreement, not by the lender.
2. The new payment
Use a realistic rate for the program you expect. Taxes matter a lot in New Hampshire.
3. Can one income carry it
Optional. Enter figures for whoever is keeping the house, on their own.
Your estimate
Estimate only. Not a quote, an approval, or legal advice. Nothing is stored or sent.
The formula is simple. The pricing is not.
Buyout = equity × the departing party's share, plus or minus agreed adjustments
New loan = current payoff + buyout + any closing costs rolled in
LTV = new loan ÷ home value
The arithmetic takes thirty seconds. What decides whether the deal actually works is the last line, because loan-to-value determines which programs are open to you, and the type of transaction determines the rate you pay on all of it.
This is where buyouts are won or lost. Borrowing above your current payoff normally makes a refinance a cash-out, which caps you near 80% and prices higher. But when the buyout is required by a written legal agreement, agency guidelines commonly allow it to be treated as a limited cash-out instead, which opens a much higher loan-to-value at ordinary pricing. The calculator shows both bands so you can see whether the distinction matters in your case.
What each loan-to-value band means
Typical maximums across common programs. Individual lenders set their own overlays and these change over time.
| Your LTV | What is usually available | What to do next |
|---|---|---|
| Up to 80% | Every route, including standard cash-out. The legal agreement exception matters less here. | Compare programs on price alone. |
| 80% to 95% | Conventional treatment of a buyout documented by a legal agreement. Standard cash-out is closed to you at this level. | Make sure the agreement wording supports the exception. |
| 95% to 97.75% | FHA territory, subject to occupancy and program rules. Mortgage insurance applies. | Weigh the MI cost against the alternatives. |
| 97.75% to 100% | VA may still work for eligible borrowers. Very little else will. | Confirm entitlement and remaining eligibility. |
| Above 100% | The buyout as calculated cannot be financed against this property. | Revisit the split, the value, or fund part of it from other assets. |
Before you rely on this number
- Check assumability first. If the existing loan is FHA, VA or USDA, assuming it may let you keep a below-market rate. The calculator assumes you are refinancing, which is not always the right move.
- Some agreements deduct hypothetical selling costs before splitting equity, often 5% to 6%. If yours does, enter that as a negative adjustment.
- The lender's appraisal governs the loan, not your agreed value. If the two differ, the financing follows the appraisal.
- Support income needs history and continuance to count, commonly six months received and three years remaining. Entering it here does not mean an underwriter will allow it.
Four things this tool cannot answer
Whether you qualify
The debt-to-income figure here is a rough read. Real underwriting looks at credit, employment history, reserves, how income is documented and program-specific rules that no calculator replicates.
What your rate will be
Pricing depends on credit score, loan-to-value, occupancy, property type, transaction type and the day you lock. The rate field here is your assumption, not a quote.
What the split should be
Fifty percent is the default in this tool, not the law. Equity division is a legal question that depends on your agreement and your circumstances. That belongs with your attorney.
Whether refinancing is the right move
If the existing loan is assumable and carries a rate far below today's market, replacing it may cost far more than the calculation above suggests. Worth checking before anything is signed.
Questions about the numbers
How do you calculate a divorce house buyout?
Subtract the mortgage balance from the home's value to get the equity, then multiply by the departing party's share, commonly half. Add or subtract any credits agreed in the settlement. The buyout amount is then added to the existing payoff to produce the new loan, so a $525,000 home with a $285,000 balance and an even split produces $240,000 of equity and a $120,000 buyout, financed as a roughly $405,000 loan before closing costs.
Do selling costs get deducted before splitting the equity?
Sometimes. Many agreements deduct a hypothetical cost of sale, often 5% to 6% of the value, on the reasoning that the departing party would have paid it if the house were sold. It is negotiated, not automatic. If your agreement includes it, enter it as a negative adjustment in the calculator.
Can I roll the closing costs into the buyout loan?
Usually yes, as long as the resulting loan-to-value stays within the program limit. Rolling costs in preserves cash but raises the balance and the payment, and it can push you from one LTV band into a worse one. The calculator lets you toggle it so you can see whether it changes which programs remain available.
What debt-to-income ratio do I need?
Most programs cap around 45% to 50%, with flexibility for strong credit and reserves. Under 43% is comfortable, the low 50s is generally too high without compensating factors. Support paid reduces your capacity and support received can add to it, but only when documented and continuing.
Is a buyout taxable?
Transfers of property between spouses incident to a divorce are generally not treated as taxable events, though the future basis and any later sale can carry consequences. This is a question for a tax professional and an attorney, not for a mortgage calculator.
NextGen Mortgage Loans, NMLS #1621958. Licensed in NH, MA, ME, FL and RI. This calculator is an educational estimate only and is not legal advice, tax advice, a commitment to lend, an offer of credit, or a rate quote. Results are based solely on the figures you enter and do not account for credit history, reserves, documentation type, mortgage insurance, HOA dues, lender overlays, or program eligibility. Loan-to-value maximums shown are typical industry ranges and vary by lender and program and change over time. Equity division, tax treatment and property settlement questions should be handled with a qualified attorney and tax professional. All loans are subject to underwriting approval, income and asset verification, and property appraisal. Equal Housing Opportunity.
MLO License Info: NMLS #1621958, NH Broker license #1621958MBRR, and MA Broker license #MB1621958, ME Broker License #1621958, FL Broker License #MBR4542, RI Broker License #20265029LB
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