Each is $3000 a month, and while a portion of both are tax deductible, they are both ‘required’ payments. Also, NYC banks no longer allow home equity loans unless the percent of apartments that are owner occupied exceeds 90%, so that is no longer an option. The good news for us is our daughter wants a state school and we saved for a private college.
MODERATOR’S NOTE:
I’m lost. Is there a question here?
Are you saying you are including your maintenance monthly cost on the Profile form as part of your mortgage payment? If so…I’d say you better contact the colleges and change that ASAP. Because that $3000 in maintenance is NOT part of your mortgage. Adding extra money to your mortgage is NOT permitted for financial aid purposes. Doing so knowingly…and getting need based aid because of that would be deemed FRAUD.
But then…maybe this isn’t your question…
When it is a coop, part of your maintenance payment is to pay for coop building’s mortgage, which is part of your mortgage payment. If a building doesn’t have a mortgage then it is a condo. What you need to do is to figure out which portion of your maintenance is building’s mortgage payment, property tax and maintenance of the building. I just recently had to fill out a FA form for D2’s law school. I included my portion of building’s mortgage payment.
I can’t seem to edit my post…The reason a coop is cheaper than a condo is because coop has underlying mortgage, and as a shareholder you are responsible for your share of it.
Thanks @oldfort that makes sense.
Of course, we have no idea what the OP is asking…since he didn’t really pose a question.
So if I understand this correctly…any part of the coop monthly fee that is mortgage can be added to the mortgage the OP reports…but not things like taxes, and maintenance costs? Is that correct?
Yes. We get a break down from our management agent on which part of monthly payment is mortgage, property tax, and maintenance. In NYC when you buy an apartment, it is important to look over the building finance to figure out how much the apartment is worth. A building’s underlying mortgage is a big factor on an apartment’s value. To make it even more complicated, your building could be a land lease building, which means you don’t own the land the building sits on. When the lease term is up, the land lord could potentially not re-new the lease. When you see a 3 bedroom apartment on a prime location valued below 2 mill then you need to look at building’s finance.
Just clarifying…this poster can NOT include the full $3000 coop fee…he cannot include maintenance or taxes. He can only include the amount apportioned for mortgage.
That sure isn’t what it sounds like he is doing…but we don’t know…for what!
If your apartment is in a lead lease building, the question is could you include the proportional rent you are paying to the land owner.
This just isn’t true.
Condos and co-ops are different. If it’s a co-op, you own shares in the co-op and lease your apartment. If there are empty apartments in the building , the other shareholders are responsible for their share of expenses.But there ARE co-ops which have paid off their mortgages.
The underlying loan that a condominium might have is just not called a mortgage – at least not in the traditional sense of how we think of a mortgage. That’s because the condo association doesn’t own anything to mortgage. But it can secure a loan with the monthly maintenance fees which is has the right to set and collect on a monthly basis. So while it’s not classified as a mortgage, some condominiums do have outstanding loans.
A condo association can have loans secured by monthly payments, but it can’t secure a loan with the building as the collateral. A criteria for a building to be a condo is it can’t have a mortgage. I guess I should have phrased it as such.
@oldfort - A condominium association can also secure loans by pledging its real estate, that is, its common areas.
That’s interesting. I wasn’t aware of that. There is so much to nyc real estate.
Meanwhile, where’s the OP?
MOBDERATOR’S NOTE:
As fascinating as the intricacy of NYC RE is, the OP seems to have abandoned the thread, and as I said from the outset, I did not understand the purpose. Closing.