Skip Navigation
StreetEasy

Underlying Mortgage

Started by Matthew80NYC
over 9 years ago
Posts: 15
Member since: Apr 2014
Discussion about
How high is too high for an underlying mortgage on a per shareholder basis? Is $50K (individual share) steep? Building expenses are low otherwise.
Response by NWT
over 9 years ago
Posts: 6643
Member since: Sep 2008

For an ordinary Manhattan co-op, $50,000 per average apartment is just at the high end of no-big-deal. More than that, it'd jump out at the accountant or lawyer checking the metrics and they'd dig into it. Lots of 1980s-conversion co-ops started out with hefty mortgages, but've had 30 years to pay them down.

Ignored comment. Unhide
Response by 30yrs_RE_20_in_REO
over 9 years ago
Posts: 9882
Member since: Mar 2009

Except the majority of Coops don't actually pay down their underlying mortgages. The most common for Coops is a "5 like 30" which is the payment schedule of a 30 year loan but a balloon payment after 5 years. Then they refinance and do it all over again.

Ignored comment. Unhide

Add Your Comment

Most popular

  1. New Casinos
    25 Comments
  2. ALDIs coming to Hells Kitchen
    30 Comments
  3. Pre-election luxury market
    68 Comments
  4. Are there any post-election fire sales?
    13 Comments
  5. What is the deal with Brooklyn
    24 Comments