Refi and cash out Interest only mortgage on Co-ops

Building loans or shareholder loans?

For our shareholder loan, we did an interest-only mortgage with a small ($25k) cash out through Citi Private Bank. It's actually a 30-year fixed mortgage that requires no principal payment for 10 years. LTV of 50%. Our neighbors also refinanced through Citi with significant ($200k+) cash-out for a vacation property, but using a standard 30-year fixed (no I/O). Their LTV was around 50% as well.

For our building loan (7 units), we did a $45k cash-out through NCB, but we are paying principal.

Hope this helps.

We were offered 10-yr IO as one of our refi options but did not pursue. Our LTV is below 50%, so maybe it's only available for low leverage loans that have low risk of becoming upside down over the next 10 yrs?

Thanks lad and ReMom.

This is for a shareholder loan. Apt value is in the $2.2 million range, current mortgage is $700 000 and I was looking to take out an additional $400 000. This would translate to a 50% LTV for a $1.1million interest only mortgage.

Hmmm, jumbo is an added complication. We're under the jumbo limit.

I looked at it too but the cap on deductions proposed by GOP and now favored by democrats as well as the lack of consensus on how to raise revenues, suggests that this is not a good strategy until a new tax policy is agreed upon in congress.

Realtime. The strategy is to have cash for investment opportunities and low payments for cashflow purposes...the tax implication is an irrelevance.

do the coops you guys mentioned are all paid down (no loan at all) before doing the refi?

so the ltv = (refi amount)/(apprasal amount)?