Condominiums are a popular investment property among buyers. Many individuals also opt to purchase a condo as a vacation home. The low maintenance and affordability help make condominiums appealing to first time homeowners, vacationers and those individuals who are seeking investment property. However, condo refinance rules are rather strict and can be a bit tricky. To best understand condominium refinance regulations and how to refinance a condo, you should explore your various options and discuss condo refinancing in depth with your chosen lender.
Find the Best Condo Refinance Rates
When looking to refinance mortgage rates, condo properties are often considered by many lenders to be a high risk refinance. Investment condo owners should shop around for the best refinance mortgage rates. Condo mortgage refinance rates will vary from lender to lender. Get estimates on condo refinance rates before settling on a particular lender. You should also determine if your refinance mortgage is at a fixed or adjustable rate.
Understand Your Condo Refinance Plan
Since rules and regulations for condominium refinance can be a bit difficult to comprehend, be sure that your mortgage lender covers everything with you and that you are completely clear on the terms and condo refinance rates before you commit to a particular refinance mortgage plan. Discuss the interest rate and be certain that you are aware of any fees associated with the condo refinance plan.
Calculate the Benefit of Refinancing
Once you have selected a mortgage lender, calculate your monthly and total cost of the refinance. Will it be of benefit to you if you refinance your condo? Make sure to include all extra costs with your interest rate and monthly payment. You should receive a Good Faith Estimate from your lender long before closing on the refinance mortgage. Be certain to examine this estimate closely and calculate the benefits of refinancing before you commit to a plan.
Things to Ask the HOA Before You Apply for Condo Refinancing
If you are seeking approval for a condo refinance mortgage, there are a couple of things you should find out from your Homeowner’s Association. The information provided by your Home Owner’s Association may prove useful in helping you to secure the condominium refinance mortgage. Gather the following information from your HOA:
*Number of units in the building
*Number of occupied units
*Number of sold units
*Number of units pending sale
You should also be prepared to provide your lender with contact information for your Homeowner’s Association.
Choosing to refinance a condo can be a difficult task given the tight rules and regulations put into place by many mortgage lenders. Make sure to do your homework and be well informed before attempting to apply for a condominium refinance mortgage.
Back to Mortgage Types
Back to Mortgage News & Articles