Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,269
|
Post by Ava on Aug 31, 2017 20:43:53 GMT -5
I'm not sure I'll be able to refinance my condo. I think it won't be possible to do it.
Background
It was purchased in 2008.
My original interest was 6.875 percent. It was outrageous but all I could get back then due to short credit history.
It has been underwater since almost day 1.
I was able to refinance it through Harp in 2012, bringing my rate down to 4.375 percent, and my payment went down $100 per month.
I want to refinance again to lower my rate and my payments.
The problem is that it's still severely underwater.
I ran the online calculator of a local credit union and it said they wouldn't refinance due to debt to equity ratio. It also said to contact the mortgage department because maybe they could help me.
I don't want to waste a lot of time chasing after banks or credit unions if I don't stand a chance.
I owe 58K and the last unit to sell a few months ago went for 37k.
I think Harp is still around, but I believe you can only use it once.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,711
|
Post by CCL on Aug 31, 2017 20:50:59 GMT -5
I don't think that's a terrible rate. What's the lower rate you are trying to refinance to? With the amount you owe, how much would it lower your payment?
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,269
|
Post by Ava on Aug 31, 2017 21:14:09 GMT -5
I think if I can refinance to something like 3.5 percent my payments would go down between 40 and 50 dollars a month.
It's not much, but since I plan to rent it out and use a management company, every extra dollar would help with cash flow.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,711
|
Post by CCL on Aug 31, 2017 21:24:51 GMT -5
What about closing costs? It might take a long time to break even. If I could find a 3.5% rate I'd consider refinancing, but I've never seen it available around here.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,269
|
Post by Ava on Aug 31, 2017 21:47:34 GMT -5
I didn't pay anything out of pocket with my Harp refinance.
|
|
Ryan
Senior Member
Joined: Jun 16, 2014 13:40:36 GMT -5
Posts: 2,218 
|
Post by Ryan on Aug 31, 2017 22:09:45 GMT -5
If you're that far underwater, I don't know how you could get a rate that's any better...even if you could put some money towards paying it down.
I know when I refinanced several years ago, you needed a fairly large mortgage in order to even get the best rates.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,269
|
Post by Ava on Sept 1, 2017 6:28:41 GMT -5
Yes, I thought I wouldn't be able to refinance.
I just wanted to make sure before I gave up on the idea.
I guess I'll have to attend the next condo association meeting in October to see if they would reduce our monthly dues now that we have superavit. Our monthly dues are really high.
I'm just trying to improve the cash flow of this condo before I turn it into a rental.
|
|
