Category Archives: Mortgage Financing

Land Leases explained

New York Magazine has an excellent write-up on the implications of land-lease properties, which are not a rarity in New York City. According to Wisegeek:
A land lease is a type of financial arrangement in which the ground under a structure is leased, rather than sold to the builder, meaning that the land and the structure are owned independently.
In other words, it is when you buy your apartment but still rent the land beneath it. NY Mag’s diagram makes this very clear. A land lease property means that you are on the hook for a …

by Michael Foster on August 22, 2011

Condo Mortgages: Three Things to Know when Financing a Luxury Condo in New York City

 
Since 2008, home financing has been a challenge, and a lot of homebuyers have needed to jump through extra hoops to obtain financing for a luxury condominium. There are a few things that homebuyers should keep in mind when they’re shopping around for a mortgage:
1. Your income doesn’t matter as much as your credit score. While it is true that banks will try not to give mortgages to people who can’t afford the payments (especially in this economy), homebuyers with several income streams or large capital reserves are different. Homebuyers …

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by Michael Foster on July 8, 2011

Reports On A New Federal Rule That Relates To Mortgage Brokers

It is good for everyone to know that there is a new Federal rule in town when it comes to a mortgage broker dealing with your loan. The New York Times recently reported that as of April 1, 2011 the Loan Originator Compensation amendment to Regulation Z is in affect.
Yes I know the amendment sounds like a mouthful.  It was created so that clients who are getting a loan get the best deal they can on the interest rate and other fees. This specific rule enforces the loan originator or …

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by Anthony Longo on February 22, 2011

Mortgage Rates Increasing In The New Year?

The holiday season is almost over and I am sure you are all coming out of your food and drink comas. As my sister-in-law says “I can’t even look at another cookie.”
I hope you all are not entirely done with 2010 because we still have New Years to look forward too. Once that classic Times Square ball drops we are officially headed into the great unknown of 2011. Many things could happen in a year, a month, a day or an hour, for example the continuing increase and decrease of …

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by Anthony Longo on December 26, 2010

Low Mortgage Rates, Where Are The Buyers?

This message it going out to all you potential new homeowners out there, let’s buy some condos. Mortgage rates are at an all time low and USA Today is reporting how customers are not taking advantage of these rates.
Let’s face it there are reasons why Americans are hesitating on buying a home. The biggest fear is the high unemployment rate, and for those of you that have a job, there is the fear of losing it. Another aspect is how Americans are paying mortgages higher than what their homes are worth. …

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by Anthony Longo on October 4, 2010

Should You Refinance Your House? Check This Out

The New York Times recently posted an article about a new tool available to refinance your house. All you have to do is go to Bills.com to check out the refinance calculator. This calculator will help you figure out if refinancing is an option for you.
It’s pretty easy. All the user has to do is enter the loan amount, with the location of the home, duration of loan, rate and your personal goals. It’s a great way for you to save time of filling out all the paper work of …

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by Anthony Longo on September 20, 2010

Jumbo Loans help Real Estate Market move past the Jumbo Disaster

In the tristate area, a jumbo loan is defined as borrowing more than $729,750.
In a city where the priciest home to hit the market last week was a 10-bedroom townhouse at 1016 Madison going for $72 million, it shouldn’t surprise anyone that lenders have decided to make it easier to qualify for these loans, in addition to bringing down the rates.
The New York Times reports that real estate brokers are hopeful.  Frederick Wohlfarth, president of Wohlfarth & Associates, said he has already seen a 40% rise in sales requiring jumbo …

by Anthony Longo on April 5, 2010

Friedberg Cohen Coleman & Pinkas, LLP Tip of the Month: Save Money When Buying in NYC

One of the biggest closing costs when purchasing a Condominium in NYC is the “mortgage recording tax”.  This  is a tax a purchaser pays when obtaining a mortgage loan to purchase their condo.  If your loan is greater than $500,000, the tax is equal to 1.925% of the loan amount.
HOW TO AVOID PAYING ALL OR A PORTION OF THE MORTGAGE RECORDING TAX:
If the Seller has a mortgage on the property that you are purchasing, ask your attorney to request an “Assignment of Mortgage”.
The law permits the Seller’s existing mortgage to be …

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by Anthony Longo on March 25, 2010
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