No, you do not have to have both spouses on a mortgage. Married couples that are buying a house or refinancing a current home do not need to both be on the mortgage. In a lot of cases, it may be advantageous to only have one person on the mortgage.
For instance, if one spouse has low credit and/or they have a lot of debts, having them on the mortgage could actually negatively impact your mortgage rate and your overall buying power. Some of the benefits to having one spouse on the mortgage include:
- You can minimize and avoid credit issues as a result of poor credit spouses
- You can save money on mortgage interest by qualifying for a lower mortgage interest rate, assuming one of the spouses has exceptional credit while the other doesn’t.
- You can protect your assets if a spouse has excessive debt and is vulnerable to confiscation of assets by creditors.
- One person on the mortgage makes for a much more simplified estate planning process.
- The person with the house in their name can protect their asset during a divorce.
It’s important to consider if adding a spouse improves your mortgage rates and overall buying power. Your mortgage advisor can help you with this process and guide you in the entire process of selecting the best mortgage strategy for you.
