Can I refinance my new construction condo if we haven’t incorporated? 2 part question…?

First Question:
I’ve lived at my Washington state condo for a year and a half, which was a new construction at the time I closed. Anyhow, I presently have a conventional 30 year fixed loan at 6.625% and would like to refinance at the lower mortgage rates.

I’m told that because we haven’t been incorporated – there’s no homeowner’s association since there are still some units for sale – that it will prevent me from being able to refi. Is this statement correct.

We (building occupants) are planning to go through the Articles of Incorporation within the next 3 or 4 months and I’m concerned I’ll miss the opportunity to refi at these all time low interest rates.

With property values significantly decreasing especially in my city, will this also affect the loan interest rate aside that I have phenomenal credit overall. Anyhow, I put half down on my property in fall of 2007, yet the value of identical units like mine are currently selling for 30% less. The ratio of what I owe vs what my unit now is worth… how does this affect my rates.

Second Question:
With the condo’s appraised value being 30% lower, will I have to pay PMI. I want to rollover my balance which is 25% of current market/assessor’s appraised value for my home.

Thanks for your help.

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