When does it make sense to refinance?

[shabbychick]

So, I just got my newest tax assessment in the mail today. When I refinanced this condo 5 years ago, I paid for a $189K condo (this was about a year after I moved in). My new tax assessment values the combined land and buildings at only $154K. Yikes! I still owe about $180K on it, so there's no way for me to sell it and make back anywhere near enough money to do anything else (like buy another house). I'm stuck here for awhile, obviously, and I'd really like to do some modernization/improvement like putting in wood floors (probably fake, but still), update some of the lighting, and maybe even improve the bathrooms. I'm wondering if refinancing would get me a low enough payment that I could put some money into improvements without having to take out home improvement loans. On top of all this, of course, is the fact that my salary will be cut by 3% next year so I can help the state balance its budget. I don't want to just google around on this question because I know my search will just generate a bunch of spam, and I don't trust my mortgage holder (B of A) to tell me the truth. Where do you go to get reliable advice about something like this? I really do want to change the flooring and fix up the baths, and I think I'm probably stuck here for at least another five years (and that's only assuming we hit bottom soon and start working our way back up). I'd like to make this place nice for me, let alone make it nice for a future buyer. Any advice? Any good resources?

[mac78]

I don't really know, but have some thoughts on it, although they are probably useless.....You could probably refinance for same amount and have lower payments. I am not sure how the home equity loans work (and we have one), but think you have to have a % of equity in the loan before can take one out.

We actually just talked to the realator that sold us our home 23 years ago. She said that she did not think the home values will ever go up to what they were at their highest peak....basically stating that home values were so overrated and inflamed right before the downfall. Living in rural NW Ohio, it may be different here than a "desireable" location.

I would recommend a local bank to go and talk with them. I stay away from mortgage companies. I feel that local banks are more willing to work with people than mortgage companies you never really see in person. Just my opinion though.

Last May we tried to refinance our home and home equity loan. It would of been approx. $60,000. They wouldn't do it for us even though they said we could save $300 per month doing it. The best they would do for us is give me, not Dave, a 30 yr loan, to which I basically told them to go to hell that I would be 80 years old at that point. They really pissed me off, as we have never made a late payment, even with Dave losing his job and having 0$$ income for 5 months. They are so willing to help the guys/banks/systems that messed up the economy, but won't help the little person who works their butt off to pay their bills on time. Good luck. Hopefully someone here can give you some good advice.

[vintage girl]

In this economy it is very difficult to refinance, as most properties are upside down with negative equity. Do you have a credit union that you belong to through your school? They will do refinances and have very competive rates. They can let you know immediately if your property would be eligible for a refinance, based on current amount owed vs current market value. If you are planning on staying in the property for a while, I would put aside funds each month for the remodeling projects you want to do, and than pay as you go. Right now is a great time to get work done at very very reasonable rates. Anything you do to your condo will add value. One way to save funds would be to have your property tax's reassessed. Since yours came in lower in value than your purchase price, you can ask to have them lowered. They normally do not do this automatically, you have to ask. The only problem with that, is when your home value goes back up, which it will eventually, your property taxes will raise again. This is a tough economy to figure out what to do with property.