Post # 1
A little background: My ex and I bought a condo about 7-8 years ago when the market was super inflated…6 months later the housing market plummeted and we were left with a condo that we owed more on than what it was worth. Refinancing wasn’t an option until recently. I’m in the works of possibly refincancing my condo but the catch it I really want to try to sell it within a year or two. But as luck would have it, condos are hard to sell so I will possibly have to rent it out for a few years until I find a buyer. So my question is would it be bad to refinance my condo now, only to try to sell it in about a year? Or is refinancing and trying to sell so soon after be more trouble than what its worth? I would just love to reduce my intrest rate (because believe me its super effing high) and a lowered mortgage payment sounds amazing to me right now.
Also anyone who lives in Indianapolis want to buy a condo?! …figured it wouldn’t hurt to ask.
Post # 2
Calculate the refinance cost and the cost of going back to Year 1 on your mortgage (even if it’s not a 30-year note, the first 5-8 years of alost any mortgage are purely interest and you won’t see the principal go down substantially till after that) and compare to the money you’d save on monthly payments for the 1-2 years till you plan to sell.
So if it is $4000 in closing costs (often buried back into the loan) and adds $8000 to your total amount to payoff (or reduces the ratio of accured equity by $8000) then your payments would need to go down by more that $500/month for it to be a break-even deal for you with a 2-year sell date. Sell sooner and you lose money on the deal, sell later and you save more money.
Post # 3
I’m in the mortgage industry. Do you know if your condo development is approved on Fannie Mae’s list? If not, the rates will be higher as you’ll need to go through a portfolio lender for financing.