Can I decline what the banks are offering me for a mortgage loan?

Assuming there's a financing contingency of some sort in your contract, you might be able to escape. It depends on the exact language of the contingency, and whether it protects you against a situation where you can get a co-op loan, but only on onerous terms (for example, 50% down). This is really a question for your attorney, not an Internet discussion board.

I agree with west 81st....it is all going to depend on the language you have regarding the mortgage contingency. Lets hope you have one in there :)

Try another mortgage broker. The mortgage rate seems good, the additional down payment not so good.

I've never heard of a bank requiring a 50% down payment. Is there something wrong with the co-op?

OP here... thanks for those who responded, so far. I believe I have a mortgage contingency. btw, I'm buying in a well managed co-op in Clinton Hill.

The bank isn't requiring a 50% down payment, but because I am self-employed maybe they're being extra careful. I've been saving my pennies for a buying climate such as this (dropping home prices, relatively cheap money... actually, I think I lucked out b/c the seller is desperate to sell due to an illness... she's asking for $450/sqft, comps in area show around $525/sqft). I decided to put that much of a down payment to keep my monthly costs low. I plan on sticking around for a few years, so I think I can weather the coming storm.

I think I'm getting a good deal. The banks are just being very careful. Guess I can't blame them after the mess they got themselves into.

Ah. You're self-employed. There's the rub.

Yes, I'm a self-employed graphic designer... that's even more of a rub :(
On the plus side, I have over half a million in liquid assets and can purchase the co-op outright if I wanted to :)
The banks--after asking for every piece of information about myself I can possibly supply them--should show me some mercy >:(

OP again... btw, I plan on using this place as a business office (being self-employed, it'll be a super deduction factory... if I play my cards right, I can right off the whole thing plus expenses). Does anyone know if there is a favorable type of loan for office space?

This might be presumptuous, but if you say you have over $500k liquid, you should have plenty left over after paying an extra $25k. Assuming the $500k is net of your down payment.

Of course your finances are you own biz, and you want to finance your home as much as possible. Maybe talk to the bank and negotiate? Sounds like you've found a good deal and a good rate. But if the outcome doesn't sit right with you then consider it wasn't meant to be.

Hi uptowngal. I want to have some money left over some renovation work on the place. I also hope to go to grad school and don't want to take out any more loans. A portion of my assets are in IRAs... I can w/draw but under penalty. So, while I have enough to purchase the apartment, I am terribly hesitant to put in any more than I already have towards it.

Thanks for the advice... I'll see if I can negotiate!

you should try to avoid w/d from your IRA if at all possible. sounds like you're being very prudent, something that unfortunately can't be said about other people who got in over their heads and are now walking away from their homes.

Great news... I just got a 5.25% conventional mortgage by going directly to the bank. I spoke to my mortgage broker to tell him I probably didn't need his services anymore and he was cool with it. He's a nice guy (yes, there are nice brokers out there)... I hated to have to tell him.

What bank?

5.25% for a 30yr fixed rate mortgage today? Zero point? Please let us know which bank offers that.

Yeah, what bank? Could use a rate like that.

wells fargo

are you sure or just kidding? Wells' conforming 30yr fixed is 5.75% and jumbo 30yr fixed is 8% yesterday and today. If you're not kidding, can you tell us which broker at Wells offer this rate?

I think the donald must of gotten an arm. no way a 30 year was at 5.25.

He didn't say 30 year. It's a 15 year . . . but we wait to hear from the horse's mouth. Mortgage rates are low again for non-jumbos.

https://www.wellsfargo.com/mortgage/rates

30-yr fixed... HSBC!

No Way, No How. Not in China. Not in Moscow.

And certainly not in the US.

The_donald is full-o-sh!t. Either that or he's incredibly stupid. It is a 15-year fixed:

http://www.us.hsbc.com/1/2/3/personal/home-loans/mortgage/mortgage-rates/nat-rates

Sounds like he got HSBC's Community Works loan. Which is based either on income or neighborhood. Most of Brooklyn and parts of Manhattan qualifies (you have to call them with the exact address).

Though I was told there's some form of PMI with that loan, not sure if true.

Congrats to you, the_donald!!! And I mean it sincerely!!! I too will soon be snagging an almost-as-good loan, I hope. I will keep you posted.

Sorry to keep some of you in suspense... I was out of town for a couple of days. chrisb hit the nail on the head. I qualified for a Community Works loan. 5.25% w/no points. I hope you like the taste of crow, iMom ;)

The Community Works loan is great, if you are eligible. There are income restrictions and it applies to certain neighborhoods--i.e., lower- to middle- income, underserved communities. Since I am not a Wall Streeter, I don't make much that money--I'm happily middle-income. And lucky for me Clinton Hill is still considered under-served (and before some of the ignorant folk on this board start piling on Clinton Hill, it's quite a lovely place). I wasn't pleased with what my mortgage broker was coming up with. The best he could do was 8.75%. I did a little research on my own and found out about the Community Works program. To say the least, my diligence paid off.

poorishlady, thanks!! I hope your diligence pays off as well. Yes, please keep me posted. And if you haven't already checked out the Community Works program, please do.

Meant to say: "The best [my mortgage broker} could do was 5.875%."