A low mortgage rate has become one of the most valuable financial assets many homeowners hold, creating difficult choices for couples dividing property during divorce.
The dilemma recently drew widespread discussion after a homeowner facing divorce considered whether to assume a 4.75% VA-backed mortgage on a recently purchased Arizona home rather than sell it. Although the property had little equity and would likely generate a monthly loss as a rental, the below-market interest rate made keeping the loan appear increasingly attractive compared with today's significantly higher borrowing costs.
