Posted on: 07th Jan, 2011 12:47 pm
my son owns a condo in chicago whose value has gone down significantly (from 171 k to 100k). also the interest rates then (2006; 7/1 arm due in 2013) and now (for refinancing purposes) are 6.625 and 4.5%, respectively. however, to refinance, he can get only 80% of 100k. considering the principal left to pay (121k), he has to come up with additional 41 k + closing costs, for refinancing. he is going to be graduating and moving on within a year or so. after that one can use it as a rental beacuse the property values will still be down. he has already invested 40k in it when he took the 1st mortgage. so what to do - refinance, short sale, foreclose etc ? he is current in all the payments and not missed any.
omega
omega
Hi aumesh,
If your son wants to stay in the property for the next 5-6 years, then it will be a good option to refinance the mortgage at a lower rate. However, if he wants to move out of the property with 1-2 years, then refinancing won't be a good option.
Thanks
If your son wants to stay in the property for the next 5-6 years, then it will be a good option to refinance the mortgage at a lower rate. However, if he wants to move out of the property with 1-2 years, then refinancing won't be a good option.
Thanks
It was me above, just forgot to log in.