I am closing on a coop on friday

[George Ortiz]

Hello BP community,

I need some advice not the best at math.  I had bought a coop in Manhattan from a friend it was appraised at 190,000 got a real good price at 150,000.  We did a deal where I got a loan from the coop for 105,000, since I put down 45,000 dollars.  

The mortgage agreement with the coop was for 105,000 over 30 years, at 5 percent.  I would pay a maintenance coop fee every month of 612.00 and the mortgage payment was 579.50.  They gave me a ballon payment option if I didnt refi in a year and a half.  I have paid for 19 months now since December 2014.   So I applied to Amalgamated Bank three months ago and they approved a refi at 2.85 percent for 15 years.  

I am closing on Friday and I had asked for a 100,000 loan since that is what I estimated that I would need to cover remaining balance and closing cost.  However, the bank called me today and said that the pay off amount for the coop loan is 103,044.00 dollars, and not 95,000 like I estimated.  That my loan will not cover the closing cost and remaining balance.  I called the coop board president and asked him why my payoff only went down from 105 grand to 103 grand.  He told me that the first year 90 percent of the mortgage payment that I paid monthly(579.50) went to interest alone.  

I called the bank they said they could take the loan request back to the underwriting department and ask for a 108,000 loan to cover all the cost but that I might lose the 2.8 interest that expires this Saturday.  The closing is this friday.  The bank officer said I could either come to the closing with 7 grand or ask for an extension of the interest rate maybe pay a fee to hold it another 15 days and close next week.  I need some advice on what to do should i wait till next week or go to the closing and try to get 7 grand by Friday which I doubt I can do!

thanks for your advice BP community.

[Wayne Brooks]

After 19 months, your balance would be $102,510.86. But, your payment should have been $563.66, so maybe there were some closing costs added in and financed?  Seems like you need to delay the closing.  If your rate bumps a bit, not likely, but oh well.  You can google up "loan amortization chart", plug your numbers in and see everything.