Any Advice On Refinacing A Mortgage For A 2 BR Condo?

[RadishRose]

I want to go to my bank and see if I can get my mortgage re-financed. I need a lower payment since I retired last year!

Not too savvy on finances; I'm a simple soul and don't require much but I'd like to keep my condo, even though it's up and down stairs. Prices have come down so much that I have very little equity. I bought when prices were on the rise but got it in time before they went through the roof. Then, prices dropped dramatically and stayed pretty much down.

If I could get my mortgage payments down, I'd be ok by being very careful. I don't think a reverse mortgage is for me. My credit is good. I have no other loans, zero credit card balance but I am still paying a small monthly amount on a hospital bill of about 1300.00. What else do they look for? Would I be a good candidate for re-financing, would anyone know?

Thank you for any comments.

 

[Aunt Bea]

If you don't mind sharing your information you could prequalify on a site like Lending Tree.

I would also take this as a sign to look around and see what other housing options exist, maybe look at a ground floor unit or a one bedroom unit in your development or in your area.

Good luck!

 

[RadishRose]

Thanks Bea, I never thought of Lending Tree!

I have looked around a little but would like to stay put if I can.

 

[terry123]

Try to get a 15 year fixed rate. I bought my 2 bdr condo several years ago and its a first floor. Would rather have a 1 bdr but the condos here have increased in value so much. When I bought the 1 bdr was selling at $29,000 and the 2 bdr around 41,000 which I bought. Now the 1 bdr is selling at 49, 000 and ones like mine are around 67,000. Of ciyrse this is Houston but I live out in the Clear Lake area. We now don't have to go downtown Houston for medical as fantastic Medical center is now in Clear Lake. I don't drive a lot so its very nice for me. Wish I had bought a 1 bdr back then to rent out as I could now live in it. Hindsight and all.

 

[Catlady]

I want to go to my bank and see if I can get my mortgage re-financed. I need a lower payment since I retired last year!

Just curious, did you refinance? Right now is the best time to refinance, with interest near lows.

However, if you'd like to buy another property, if you can wait, it'll be time soon for another recession (I tend to be a market timer, I know, it's basically gambling, but . . . .) You can then get cheaper rates and cheaper real estate prices. Of course, the problem with that is that your current residence will also have lost value. I bought my house for $160k in 2005 and during the last recession it went down to $84k. Unless you have cash to put deposit in new place and can rent out old place until the economy improves. Of course, some condo HOA do not allow renting, my former one did not. If you recently retired you have time to play some options.

I don't like condos/townhouses because you have all the restrictions of a renter and most of the responsibilities of an owner. I used to have one in 2005, I used to pay $90 a month HOA and sold it a year later and now the HOA is $150 and the value on my former unit is still the same as when I sold it. With the money I'm saving on that current $150 HOA I can easily pay people to do the maintenance and stuff for my one family house and still have money left over. Nice thing about condos, though, is that it's great if you love to travel. It all depends on your lifestyle and preferences.