My New Co-op Blog

  Adjustable Rate Mortgages have been popular when purchasing or refinancing a Co-op apartment.  These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and allows you to buy a more expensive Co-op Apartment.  However the interest rate changes at specific intervals.  Depending on the changing market conditions at the time when the rate begins to adjust.  For example if you choose a 5/1 ARM, your rate will be fixed for 5 years, and begin to adjust at the beginning of the 61st month (5 years),  These rates can adjust up or down depending on the current market conditions.  The average homeowner will live in their home for 3-5 years before deciding to sell, upgrade, move or refinance.  Because of this, ARM mortgages tend to be more popular when financing a Co-op aparment.

Jessica D. Clyde

CO-OP Mortgage Specialist

NetFunding Corporation

"Mortgages Made Easy"