One Spouse on Mortgage. Drawbacks?
December 5, 2008 3:31 PM Subscribe
This is in California, a community property state. One spouse has slightly better credit than the other. If only the good credit spouse takes out the mortgage, the interest rate will be 5.25. If good credit and less good credit spouse take out mortgage interest rate will be 5.38. The difference in monthly payment is about $50 a month. Both spouses will be on the title regardless of how the mortgage is handled. Salary will be used to pay the mortgage so any payments made will be community property. One downside of having only good credit spouse on mortgage is that if good credit spouse dies, less good credit spouse will have to refinance at a possibly higher interest rate (mortgage rates are historically low). Are there any other ramifications of having only one spouse on the mortgage?