Seattle divorcees may need to cooperate to keep their 3% mortgages

Divorcing Seattleites may need to get creative to avoid the financial blow of having to get new mortgages near 7% .

Why it matters: Sometimes it's not only the ex causing heartbreak but the loss of a low mortgage rate that homeowners in Seattle and around the country are loath to part with.

State of play: Some couples who split up are continuing to live together until mortgage rates fall, even if it means one of them has to move into the basement , MarketWatch reports.

How it works: It's possible for both partners to stay on the mortgage for a set number of years even after divorce, says Alex Jacobson, founder of a Chicago divorce mediation group.

• Then, either they sell the home or the person who's keeping the house refinances to get the loan in their name, Jacobson tells Axios.

Between the lines: For many who are recently divorced, refinancing the house or buying a new one could send their monthly mortgage payment soaring, according to the Divorce Lending Association.

• Tapping into equity to buy the other spouse out of their share isn't cheap, either.

Zoom in: Washington's divorce rate in 2022 was a 6.8 per 1,000 residents, according to census data.

What's next: Others are turning to mortgage assumptions , a rare but growing way to take over an existing home loan.

• Startups like Roam and AssumeList aim to expand as homebuyers look for ways to snag a mortgage with a lower rate .
• Shoppers in areas where a high share of homeowners hold government-backed mortgages are more likely to see listings that offer an assumption, says Realtor.com analyst Hannah Jones, who notes most conventional mortgages aren't assumable.

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