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I'm investigating refinancing my coop with a different mortgage company than the one I now have. (All I want is to lower my interest rate which is now 4.375%). The new broker said I had to have the coop questionnaire filled out by the Management company, but mgmt. wants to charge me $150. to do that.
I'd like to know how common that is, how common that $150 fee is, and if there's any way around it.
Because my building is in poor shape, with many (expensive) violations, I'm not sure that I'll be able to refi anyway, so I fear I'll be throwing away that $150. without being able to recoop it later (with a lower rate).
Knowledgeable replies, rather than opinions, are greatly appreciated. Thanks!
Thank you, Steven. That is indeed my present situation. I hate to throw away $150, especially since it wouldn't be deductible next year. I don't know how to do the actual math to see how much I could end up saving, in order to discover if it would be worth it.
Not sure what you mean by a "good handicapper."
Thanks again!
A handicapper is a self-proclaimed expert in how much to wager on competitive events, like horse racing. They try to determine if a certain bet at any given odds is worth the money you could lose.
I assume you've done the math to see how many months it will take for the money you will save each month due to refinancing to cover all of the costs you will incur to close on a new mortgage. All you really need to do is find out what your repayment savings will be each month and divide that into the projected closing cost. Say your total closing costs are $2,000 and you'll save $50 each month in loan repayment. Your break-even point is 2000/50 or 40 months. You may find that the projected payback takes so long that it's not worth moving ahead with the refinance.
$150 isn't too bad. You can ask a board member (treasurer?) if they could complete the questionaire, our treasurer has done it in the past.
Thank you JG. Yes, I suppose $150 isn't bad, but knowing the history of this building, it might be lost and then it would be bad, wasted. Interesting idea about the Board Treasurer. Thanks.
Normally I would agree with JG about asking a board member. But at this particular moment in time, almost all board members are dealing with far more urgent coronavirus issues. You run the risk of having your request filed near the bottom of the pile and possibly missing important milestones, especially your rate lock expiration.
Good luck.
I presume they are concerned about the corona virus, is a desk any different than a food delivery? But maybe it's a concern re: the delivery person getting injured if he should trip or fall in the building? Some buildings want certificates of insurance from moving companies for move-ins/move-outs, or deliveries of large items.
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I assuming you are referring to the questionnaire your new mortgage company is requesting you have filled out by the co-op corporation (by their managing agent).
$150 is actually inexpensive. For as long as I can remember, the cost of completing the questionnaire by our MA is $250. Depending on what questions are asked and how frequently your MA completes a questionnaire for your building, there is probably research someone in the MA's office has to perform.
There's almost no way around needing to have the questionnaire completed. It provides your new mortgage company with a snapshot of the health of your co-op.
If you think the legal and financial situation of your co-op is such that your application may not be approved, you're wagering $150 (and other refi costs) against how much you'll save if you are approved. All you need is a good handicapper... ;-)
Good luck!
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