--- title: Our Blog - AMF Divorce | Interest Rates description: Interest Rates | From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. --- ## A.M. Financial - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Services](https://amf-divorce.com/divorce-transition-services) - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) [Book a Meeting](https://calendly.com/amymahlenmelander/consultdivorcefinancialplanning) Posts about # Interest Rates ## [Refinancing Considerations with Higher Interest Rates in Divorce: The Pros and Cons](https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons) October 09, 2023 Divorce is undoubtedly a challenging process, and when combined with financial decisions like refinancing, it quickly becomes even more complex. Typically, homeowners refinance to secure a lower... [CONTINUE READING](https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons) ## [What do the current economic conditions mean for housing prices?](https://amf-divorce.com/our-blog/current-economy-housing-prices) June 01, 2022 If you are going through a divorce or planning to sell your home for any reason, you may be curious how rising interest rates and [market uncertainty](https://mahlenfinancial.com/market-uncertainty-impact-my-divorce/) impact housing prices now and in the future.... [CONTINUE READING](https://amf-divorce.com/our-blog/current-economy-housing-prices) ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is undoubtedly a challenging process, and when combined with financial decisions like refinancing, it quickly becomes even more complex. Typically, homeowners refinance to secure a lower interest rate and save money, but in some situations, individuals may consider refinancing with a higher interest rate. This may seem counterintuitive, but higher interest rates can sometimes serve specific purposes during a divorce. In this article, we explore the potential pros and cons of refinancing with higher interest rates and why consulting a financial professional is important during this uncertain time. Pros of Refinancing with Higher Interest Rates While it might initially seem counterintuitive to refinance to a higher interest rate, there are certain conditions where this financial decision might make sense. Immediate Cash Flow Relief: If you find yourself struggling with high monthly mortgage or loan payments during a divorce, refinancing to a higher interest rate, even with a larger loan, could provide much-needed monthly payment relief. This can be particularly helpful if you need a lump sum of cash for various divorce-related expenses, such as settling attorney fees or dividing home equity. A Short-Term Need: If you plan to sell your property or pay off the loan relatively quickly, opting for a higher interest rate in the short term may not significantly impact your overall interest payments. Many individuals refinance at higher rates with the expectation of refinancing again once interest rates decrease, or even before they put their home on the market for sale. Tax Benefits: With low interest rates, some individuals may not qualify to itemize their taxes. However, higher interest rates could allow you to itemize this expense, potentially reducing the effective impact of the higher interest rate. Consulting a financial professional can help you determine the after-tax or 'effective' interest rate. Divorce Benefits: Refinancing can protect you in a divorce by separating your finances from your ex-spouse. Holding a joint mortgage after divorce can lead to credit risks and complications in estate planning. Separating finances as much as possible in a divorce is typically recommended for a smoother transition and a healthier co-parenting relationship. In an extreme example, you need to update wills related to your property once your divorce is finalized because joint rights of survivorship will terminate automatically, and transfer to ‘tenancy in common’ in Colorado. If the non-resident spouse remarries while the house is still owned jointly and passes away, the ex spouse and new spouse would co-own the property! Income Tax Bracket Consideration: Generally, a higher interest rate refinance may benefit individuals in higher tax brackets, where tax deductions are more valuable. Conversely, it may not be advantageous for those in lower tax brackets or those primarily receiving tax-free maintenance and child support. Cons of Refinancing with Higher Interest Rates While the cons of refinancing with higher interest rates may seem obvious, there are some specific drawbacks to keep in mind relevant to divorce. Higher Long-Term Costs: The most significant drawback of refinancing with a higher interest rate is that you'll end up paying more interest over the life of the loan. Even with lower monthly payments, the total interest paid over the loan's duration can be substantially higher. Qualification Challenges: Higher interest rates can make it difficult for individuals to qualify for a new home loan due to income constraints, debt levels, or loan-to-value issues. Given the complexity of divorce and changing financial circumstances, qualifying for a higher interest rate can be challenging. Reduced Home Equity: Refinancing with a higher interest rate means building home equity at a slower rate compared to a lower interest rate. This can impact long-term financial stability and your ability to access home equity for other purposes. Credit Impact: If you struggle to make payments on time due to increased monthly obligations from a higher interest rate, due to the overall impact on your budget, refinancing can indirectly and negatively affect your credit score. While refinancing with higher interest rates is not typically recommended due to the potential for higher long-term costs and reduced financial benefits, it's important to run the numbers and carefully assess your specific financial situation and goals. This is especially true during a divorce, when asset ownership gets more complex. Consulting a financial professional, such as A.M. Financial, can help you model different scenarios that take variables into account including tax benefits, financial objectives, and budgets, allowing you to make informed decisions about refinancing. Contact us to learn more about how we can assist you during this challenging time.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "09/10/2023", "datePublished" : "09/10/2023", "headline" : "Refinancing Considerations with Higher Interest Rates in Divorce: The Pros and Cons", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-M9uR5o.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If you are going through a divorce or planning to sell your home for any reason, you may be curious how rising interest rates and market uncertainty impact housing prices now and in the future. It’s a time when many homeowners are questioning whether it’s the right time to sell or even buy a new home post-divorce. Denver real estate expert, Shirley Jenkins, recently provided some insights on what to consider relative to housing prices in the current market conditions. In this post, Shirley answers four top questions you likely have in mind if you are considering selling your home in your divorce. How have rising interest rates impacted housing prices? Rising interest rates impact a buyer’s purchasing power. Every time interest rates go up, purchasing power decreases. For example, if someone is pre-qualified for $500K and interest rates go up even a quarter of a point, they now only qualify for about $485K, a fraction of that $500K. This dynamic can slow the housing market out of fear and slow home purchases because a buyer can’t afford the type of home they desire. Has an increase in interest rates been offset by a decline in prices? While it might seem like this should be the case, it is unlikely that we’ll see a decline in prices even with rising interest rates. This will vary slightly based on neighborhoods and price points with more competition. Similarly, interest rates aren’t impacting inventory like you might expect. Because real estate is hypersensitive to neighborhoods, mainly due to school districts and tax implications of certain areas, prices can be relatively stable in popular neighborhoods which have a great reputation, low inventory, and homes of a desirable age. This makes pricing a home difficult and you may have to test the market to find the right price in such a volatile market. Where do you expect interest rates and home prices to head through the end of this year and into 2023? Experts in the field believe that the market won’t change that much in the way of home prices over the next year, but interest rate hikes will likely continue to happen. The market will be somewhat status quo, with most trusted advisors predicting one interest rate hike still this year and one at the beginning of next year. Interest rates of 5-7% will become the new normal and will likely settle in the mid-6’s within the next 12-18 months. What else is important to know about selling a home in this environment? Keep market perception in mind, which can be a confusing phenomenon. Buyers and sellers perceive the market almost always six months in arrears. In other words, they perceive market conditions that were a reality six months ago. This leads to sellers being shocked that they can’t list their home as high as they would like. It’s difficult to keep up with the reality of real estate at the pace it changes. Said another way, it takes about six months to shift perspectives to actual market conditions.In these confusing and unpredictable market conditions, it is critical to find a realtor who truly trusts and understands how this market impacts your ability to buy and sell real estate, especially if you are going through a divorce. Amy Mahlen of A.M. Financial can support your decision by providing insight into the financial aspects your budget and what you can afford in this volatile market. If you have additional questions about the Denver real estate market and what to expect from this real estate market, contact Shirley Jenkins to learn more about how she supports clients in their real estate needs.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "What do the current economic conditions mean for housing prices?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-3DOMC6.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/current-economy-housing-prices", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```