Re-Fi Costs

Closing costs for a coop are not really related to the amount of the mortgage. It is the same amount of work regardless of how large the mortgage is. $3000 is about the going rate. Maybe you can do a tad better. Fortunately, because a coop is technically not real property, you need not pay the "mortgage recording tax" when refinancing which I think is 1% of the mortgage amount.

Thanks Kyle. Since my rate is pretty low, I guess it makes no sense to refi given the costs.

I believe there are banks that will do no cost refis. A friend of mine used one of the online lender search/compare aggregators and paid like $200 bucks for his refinance. Can't speak to his experience, but may be worth investigating.

Check with your current bank. Often they will refi with a reduced or no closing charge. The other option is to pay a slightly higher rate for a closing credit that may cover 50% of the closing cost. You would likely pay 12.5-bp more in rate, but even the higher rate with closing credit may be significantly lower than the current rate you pay, making the refi worthwhile.

I am refinancing thru a mortgage broker @ 3.5 % rate. So far my closing fees are approx. $1800 on $200K loan for a coop in bkln. Coop mgmt co charges $150 fee for their work on top of that.
I do not expect to pay any additional fees. $3K is a lot. Keep shopping.

There are some closing costs even for a co-op. For instance there's the underwriting fee and a bank attorney fee and a fee for the pay off attorney. So far this comes to about $2000.00 An appraisal fee is incurred; that's about $400-500. And I'm certain your co-op will charge a fee for the refi.

For most people these fees are worth it if you are getting a lower rate hopefully of about 1%. These fees are rolled into the loan amount so you shouldn't have to come with money to the closing table. And of course there's the option of a slightly higher rate to get a credit rebate.

Ellen Silverman
E.S. Funding Co.
www.esfunding.instantlender.com

Using Wells Fargo's timesaver refinance program to refi this month.
Glad I didnt jump last year.
Dropping from 5.125% to 3.375%
3K in fees Im adding to my principal.
Cutting my monthly payment by 20%.

Wasnt so timesaver though.
Still had to submit 2 years of K1s and other things. But worth the trouble.