Hi. IANAL so can’t answer what happens to the credit cards, etc.

Another legal issue to consider is property tax. The recent initiative changed the law on this, but I think if you move into the house as your primary residence you are shielded from $1 million worth or reassessed value, but again you need tax advice on that.

At your salary, with less than 50 percent of the house owed, this looks manageable. In addition to some tax and estate planning legal advice, find yourself a mortgage broker. Get a referral from a financially savvy friend or a good real estate agent. They can help you navigate refinancing the loan. Issues to look out for include: what will the home really appraise at (if it in not in good repair, you may want to take care of some of this before you need to refinance), how much liquid savings will you need (sometimes 12 months of payments).