While a coop refinance makes sense financially, especially in New York, the original terms of the coop mortgage need to be carefully examined as well as the reasons for the refinancing. If the reason is to get a lower interest rate, weigh the pros and cons before making any final decision, since the terms of the original mortgage may include an early pay off penalty.
This doesn’t seem to make sense, when a lender should want to get their money back as soon as possible. Early pay off penalties are in place simply because lenders make more money from the interest payments in many cases than the total loan amount.
Contact us, when you are considering a refinance of a coop mortgage. We will examine the original mortgage terms and advise you as to the best options when it comes to your new loan terms. Refinancing your coop mortgage when the balloon payment is about to become due is another reason many seek out a new mortgage.
Our licensed loan professionals will be able to advise you as to the best new mortgage to obtain, preferably one that does not have a balloon payment at the end. Interest rates may be lowered, but if the overall costs of the new mortgage do not justify it, and it is not needed right away it may be best to let the current loan stand as it is. This is where you need our mortgage company to go through the entire contract and find out how to best serve your financial needs both in the present an on into the future. New York lending policies and regulations can be very different from many other parts of the country and you will need a professional to help navigate through all the red tape to get the best possible loan for your needs.
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