Refinancing any kind of home can sometimes be a challenging process. However, condos seem to have an additional layer of difficulty subject to approval by the Federal Housing Administration along with Freddie Mac and Fannie Mae before these organizations will back financial loans on them from banks. In order to successfully refinance your condominium, you need to determine if it meets the standard lending qualifications established by these key organizations and also if you can qualify for the loan itself.
Here’s what you need to know when it comes to refinancing condos.
1. Determine your current payoff amount on the loan.
First, contact your mortgage lender regarding the remaining balance on your current condo loan. This is the actual amount you need to refinance. Also, you’ll need to determine the current value of your condo since one key number regarding the financing is the LTV (loan-to-value) ratio and is measured according to a percentage overall.
2. Contact us and inquire about current rates.
We try to find the best rate possible for you given the significant amount of money you need to refinance. Keep in mind that the current interest rates change quite often. Many people use online interest rate calculators to help them determine the monthly payment of their loan. In fact, if your current mortgage loan is backed by either Freddie Mac or Fannie Mae and was securitized prior to June 1, 2009, you may actually qualify for a loan from HARP, also known as a Home Affordable Refinance Program.
3. Fill out a new loan application and apply with us.
Finally, apply for a loan with us as we are a preferred New York mortgage broker when it comes to financing condos in NY. You will need all the necessary detailed information concerning your condo as well as the condo community itself along with your current debt information and income. If your particular condo community isn’t eligible for financing, your mortgage broker will let you know the reasons why. We are well versed in non-warrantable condos, so be self-assured that we can find a program for you.