Co-op underlying mortgage refinancing options

Mortgage broker is the best bet or you can roll with NCB or with whoever you have the mortgage. Could be 10y plus 160-200 bps.

You can get as low as 130 bps over 10y.

Mortgage Broker here can be of service.
Ellen Silverman
E.S. Funding Co., NMLS#60631 since 1990
EllenSilverman@esfundingco.com

P.S. Each coop is different in their needs.
When doing a refinance for the underlying mortgage, it is important that all options are explained. Also a yield maintenance penalty can be avoided. It could be of importance to do an underlying mortgage which allows for secondary financing should the coop need emergency money.

Our previous underlying mortgage was with NCB, and the terms they proposed for a new loan were so off market it wasn't even funny. Ended up using a broker whose best deal was from Investors Bank, 10 year + 145 bps.

Closing costs are outsized compared to a residential mortgage because it's a commercial loan. You'll be paying for your attorney, the lender's attorney, and all the fees.

I fought hard for an amortizing loan so the building would at least make some dent in the principal, and maybe in six years we'll just pay the thing off. The entire industry -- lenders, brokers, attorneys, title insurance, managing agents, appraisers -- is incentivized to keep these loans outstanding as each one generates a pile of fees every 10 years or less.

We went to Investor Bank directly and saved ourself underwriting fee.

I mean saved broker fee but it was a lot of work for the managing agent.

@flarf: +1
@300Mercer: Who is your managing agent? Now that I’ve gotten into the weeds as a board member, I have realized one of our biggest problems is our managing agent. Maybe they are all terrible, but we’ve at least got to check.

Mcr, E-mail me at 300streeteasy@gmail.com.

Why not open bidding?

@300_mercer - Thanks. Your email address is noted. I have a plethora of questions for you regarding service providers because our contract with our managing agent has literally been on autorenew since 1937 (not kidding - pretty extraordinary), and it is time for a change if there is any positive change that can be made. I have yet to find a coop that is actually satisfied with it managing agent, but the fact that yours did all that work for you in your coop's refi speaks well of it.

We are a small coop and are very happy with our managing agent. Through my small real estate business, I am familiar with general issues with managing agents. Individual managing agent serving your building matters more than the company.