I got my condo in july 06 .I want to refinace my condo but iam not sure how long I should be waiting before i do so.I want to keep the closing costs as low as possible.Also some of my condos are going for less than what I bought my condo for.How will this effect my refiance?
2006-12-18 12:36:35 · 3 answers · asked by ashwiniak2 1 in Business & Finance ➔ Renting & Real Estate
It really doesn't matter when you bought it. It matters how much you can save at the time you refi from your existing loan. Most people say you have to get 2% below the rate you have.
As far as closing costs, they are the same no matter when you refi. You can always include them in the loan (good idea) and pay a higher rate.
As far as what other condos are going for, all that matters is that your condo appraises high enough to justify the loan. More than likely unless you stole your condo in July, it's worth less than you paid for it now so you have to wait for the market to rise. The only way you will know is to apply for a loan.
2006-12-18 13:53:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First, go read your loan docs. Most lenders will have a steep prepayment penalty if you sell or refinance within 2 years, or maybe even 3. If you have a penalty there's no sense in refinancing before the penalty period is over.
If you don't have any prepayment penalty, you will need to have some equity in your home. If you bought it for $100,000 and you owe $99,000 but the condos are currently selling for $97,000 you probably won't be able to refinance and come out ahead.
But it's worth a call to your lender to find out if that's really the case since I don't know the particulars of your market and loan.
2006-12-18 13:33:42 · answer #2 · answered by operababe_61 3 · 0⤊ 0⤋
talk with an experienced loan officer to walk through your situation. there are a lot of factors to consider to see if it's possible, and then to see if it makes sense for YOU.
2006-12-20 00:23:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋