coop Archives - Commercial Mortgage

May 5, 2023

Published by Bryan Hanley at May 5, 2023

What is Freddie Mac Small Balance? (For multifamily 5+ unit properties)

Freddie Mac Small Balance is a lending program offered by Freddie Mac, a government-sponsored enterprise (GSE) that provides liquidity and stability to the U.S. housing market. The Small Balance program is designed to provide financing for smaller, multifamily properties with 5 to 50 units. These properties are typically owned by individuals or small businesses and are often located in less urban areas. The program offers competitive interest rates, fixed or floating-rate loan options, and flexible loan terms to eligible borrowers. It also includes streamlined underwriting and financing processes, which can make it easier for borrowers to obtain financing for their properties. Overall, Freddie Mac’s Small Balance program provides an important source of financing for small multifamily property owners, helping to support the availability of affordable rental housing in the United States. The maximum loan amount that can be borrowed through […]

December 28, 2021

Published by Bryan Hanley at December 28, 2021

The Step by Step Guide to Refinancing Your Underlying Co-op Mortgage

There are a lot of benefits to refinancing your underlying co-op mortgage. These include a lower interest rate and changing your loan term. Depending on your why, refinancing may be the right choice for your co-op mortgage. Borrowers save an average of $2,800 annually by refinancing their loans. With a 10-year loan, this would equal out to $28,000. Underlying co-op mortgages have shorter terms than residential mortgages and often have balloon payments at the end, so refinancing is common with these types of loans. Keep reading to understand how to refinance an underlying co-op mortgage. What is an Underlying Co-Op Mortgage? It’s important to understand what a mortgage is and how an underlying mortgage differs. Co-ops have special mortgages and rules on how funding works. What is a Mortgage? A mortgage is a loan that uses a form of real estate as […]

December 28, 2021

Published by Bryan Hanley at December 28, 2021

10 Things to Avoid When Refinancing Your Underlying Co-op Mortgage

Did you know that mortgage rates have hit a 50-year low? If your building board is planning to refinance your building’s underlying mortgage in 2022, there are many pitfalls to avoid. Some people might panic when they hear the phrase “refinance underlying co-op mortgage.” However, there are many benefits to this process. In this article, we’ll explore the top 10 things to look out for as you navigate this process. First Step to Refinance Underlying Co-op Mortgage Before we get into the full list, let’s discuss the first steps. Refinancing a mortgage is one of the most important things your board will ever undertake. The implications of a refinance will impact every shareholder in your building. If done correctly, a refinanced mortgage will affect the monthly maintenance costs for every shareholder. The market value of each dwelling will change. The process […]