HABITAT
Re-financing Rebounds
As interest rates have fallen to near-record lows in the weeks following Britain’s vote to exit the European Union, the Mortgage Bankers Association reports the highest level of mortgage refinancing applications since early 2015. Zillow, meanwhile, reports a 132 percent surge in re-fi requests through its online mortgage marketplace, according to the New York Times.
When interest rates fall, refinancing can be a way for individuals – and co-ops – to cut monthly payments, pay off mortgages more quickly, or tap into equity for loans to tackle home improvements or major capital projects.
The downside is closing costs. In New York City, the figure for a condo apartment re-fi ranges from $5,500 to $8,000 (slightly more on loans over $1.5 million), and about $3,000 for a co-op apartment, says Rolan Shnayder of Citizens Bank in Manhattan. If the benefits outweigh the closing costs – and you should consult your professionals on this – smart co-op boards may want to consider re-financing their underlying mortgage.
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