Coop mortgage Rates in New York
The first coop was created in New York in the 1800s. This concept has caught on quickly and now coop units make up about 43 percent of the property in the state. The reason they have become popular is because they present a cheap option.
What is a Coop?
This is an arrangement whereby you own shares, not real property. The shares entitle you to a “share” of the building. The more shares you own, the more ownership rights you have in the coop.
The transaction for buying shares in a coop involves a seller, a buyer, a management company and a coop board. For you to become a shareholder, you have to be approved twice: by the lender as well as the coop board.
Mortgage Coop Rates
Once you are approved to join a coop in New York, you have to pay down payment in cash. For smaller coop buildings, the down payment can be as much as 40 percent, and 20 percent for larger buildings.
Typically you can borrow between $100,000 and $3,000,000 to finance or refinance a coop mortgage. This loan comes at fixed or adjustable rates.
The loan-to-value (LTV) ratio for a coop mortgage goes up to 80 percent. Anything higher than this and you have to pay higher closing costs interest rate. You need a debt-to-income (DTI) ratio of 75 percent for such a property.
You can decide to refinance the mortgage into a 30 or 15-year fixed rate. You can decide to refinance the mortgage to enjoy lower interest rates, borrow more cash or if the current mortgage is ending.
Our Role at Centex Capital
We have extra information on mortgage coop rates than any other source. You don’t need to lose sleep again looking for the current rates.
Contact us for more information, call at (212)705-4000 or email us HERE.