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Best way to pay for large condo special assessment

By Terry Savage on June 08, 2021 | Housing / Real Estate

Love seeing you on WGN Morning Show! Unfortunately, my condo building is going through a number of improvements that previous management companies & BOD kept kicking down the road, so now we are all faced w some very large special assessments.

General Details:
Current Mortgage Bal: ~$55,000 @3.875%; orig principal bal, $165k; maturing 10/2025
Special Assessment #1, levied in 2019 remaining balance: $14k, paying through loan condo assoc secured
Special Assessment #2, to be levied 7/2021: $76k
Est Condo Value: $390k

Initially, was to get a home equity loan for ~$100k to pay off both assessments, which are improvements/upgrades to our building (installing copper pipes, upgrading elevators, etc), and deduct the interest like I do for my current mortgage.

Reading up on potential options, unclear if home equity, a cash-out refi, HELOC, etc. is the best. Do I bundle in my current mortgage, even though I’m paying more principal vs. interest at this point of the loan. AND the best method for researching lenders. My credit score is excellent (760+).

Terry Says

Whew, this building isn’t very well managed, that’s for sure. I hate to see4 you give up that low rate mortgage– but I don’t understand how you could still owe so much and have only 4 years left to pay on it. Is there a balloon at the end?

This is so complicated, I think I am going to send you to my mortgage expert and friend Leslie Struthers at GuaranteedRate.com. Her email is Leslie@rate.com. Copy all your info and your question into an email to her, and feel free to use my name. If anyone can figure this out based on the specifics,she can. You can trust her advice.



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