If house is worth $490K, you have $290K in equity. Do you need to give spouse 50% ?
If so, you will need $145K + $200k = $345K new loan.

It’s imposible to quote you a rate that you qualify for without knowing your credit score, and the exact % of home value that you will need to borrow, but with a 30 YR mtg at 5% your payment will be $1852. Your taxes and insurance should be less than $400 a month, total $2252.
(A $300K loan will be $240 a month less)

If you can get $1300 a month income, it will cost you less than $1000 a month to live in a place that you are comfortable, and a good part of it will be tax deductible. You will also be paying down principal.

Assuming that you want to stay in the area, you can either sell and split proceeds and go rent
OR just stay put and enjoy a place that you already know, and forget about what you owe, just look at what it will cost you.

If you’d like to discuss your loan options feel free to contact me. …HLS