What is an underlying mortgage?
When the Corporation was established in 1982, a mortgage was taken with a financial institution so that money would be available to meet the challenges of ownership. In 1997, this mortgage was renegotiated to take advantage of the lower interest rates. Each shareholders mortgage is determined by their shares and is divided by all but 192 owners who chose to pay off their share in 1997. This mortgage will be paid in full in September 2006.
An underlying mortgage is a term used to describe the first mortgage taken out by a housing cooperative corporation. Underlying mortgages are also known as blanket loans or blanket debt. Since the cooperative corporation owns the land and the buildings in which its members live, it can borrow money secured by the property as a whole. Return to Top What is cash-out refinancing? Cash-out refinancing is to co-op apartment residents what a home equity loan is to single family homeowners. Once you’ve built up equity in your co-op apartment, you can refinance your share loan and take out the equity as cash. You can use this money to pay for many purposes: remodeling your apartment, a vacation to Europe or even college tuition for your child. While there are closing costs associated with cash-out refinancing, these fees normally are only slightly higher than the fees you might pay for a home equity loan – and you can always roll them into the refinance.
