The Real Deal New York

Posts Tagged ‘refinancing’

  • The Dream Hotel

    Ladder Capital, the commercial real estate finance company, has provided $100 million to refinance the formerly distressed Dream Hotel in Midtown, The Real Deal has learned.

    Jay Stein, the COO of Hampshire Hotels, which owns the property, said the refinancing deal closed Feb. 19. Hampshire had previously been delinquent on a $97.25 million loan attached to the property at 210 West 55th Street. The refinancing means the property is no longer in distress. [more]

  • Bronx’s Co-op City refinanced for $621M

    November 29, 2012 08:30AM

    Co-op city

    Co-op City, a 15,000-unit affordable housing community in the Bronx, has secured a massive refinancing which will allow it to continue to remain affordable for many years to come.

    The community’s mortgage has been refinanced by Wells Fargo for $621 million, the U.S. Housing and Urban Development agency said. The loan is the largest ever insured by HUD and the only loan it has insured on a co-op property. The complex is home to more than 57,000 residents. [more]

  • Fed Chairman Ben Bernanke

    Despite the skepticism surrounding QE3, the Federal Reserve’s plan to buy up some $40 billion in mortgage bonds a month, new data cited by Bloomberg Businessweek shows that efforts of the Fed and the Obama Administration to mend the housing market are making a difference — keeping interest rates at record lows and boosting refinancing applications.

    More than one in five borrowers will restructure their home loan within the next year; of that fifth, those who have at least 20 percent equity in their homes are the most likely to refinance. An estimated one in three will lower their interest rates over the next year if the Reserve holds its course, according to Lender Processing Services data analyzed by Businessweek. [more]

  • Mortgage activity plummeted 6.7 percent last week, due in part to fewer people applying to refinance, according to data from the Mortgage Bankers Association. During the week ending June 29, mortgage activity was at 78 percent of total applications — down 79 percent the previous week.

    The average interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) fell to 4.08 percent from 4.12 percent, the second lowest 30-year jumbo rate since the association began keeping track. [more]

  • From the May issue: A growing number of New York City–area homeowners are finding cash in an unexpected place: their life insurance policies. In order to take advantage of historically low interest rates, more and more borrowers are dipping into cash reserves from their life insurance to help refinance their mortgages, industry insiders said.

    It’s a strategy some view as controversial, since it involves borrowing funds intended for survivors after the policy holder dies. [more]

  • President Obama

    As the election approaches, President Barack Obama is increasing his push to help more Americans refinance their home loans, according to the Wall Street Journal, but recent data shows that his efforts to date have had lackluster results. Bloomberg News reported that more Federal Housing Administration-insured loans entered foreclosure in March, largely because of refinanced loans. [more]

  • Though it was pronounced dead-before-arrival by opponents on Capitol Hill, President Barack Obama’s new mortgage refinancing package contained far more than legislative proposals.

    In fact, significant portions of it that have received little media coverage require no prior approval from a hyperpartisan Congress, and could begin affecting consumers within weeks. [more]

  • House Speaker John Boehner and President Barack Obama

    President Barack Obama provided more details on his plan to alleviate distressed homeowners in hopes of igniting the economy during a speech in Virginia yesterday, BusinessWeek reported.

    As first proposed in his State of the Union address, Obama wants to make it easier for underwater homeowners to refinance their mortgages with low-interest, Federal Housing Administration-backed loans. To fund the plan, he is seeking congressional approval to tax large financial institutions, a measure Congress has twice rejected in the past two years. [more]

  • President Barack Obama

    Continuing to see mortgage refinancing as the road to recovery, President Barack Obama laid out an ambitious new plan for distressed homeowners to help spur the nation’s housing market in his State of the Union address.

    Bloomberg News reported that Obama will send legislation to Congress that would make it easier for all “responsible” homeowners to refinance at near record-low rates, a move that could save the average participant about $3,000 annually. [more]

  • Despite the historically low interest rates, commercial owners worldwide may face significant hurdles refinancing in the coming year, the Wall Street Journal reported. And most of the five-year mortgages used for commercial properties when the boom was at its height will be coming due next year.

    For instance, a venture that includes Goldman Sachs’ Whitehall funds has a $203 million mortgage on the Park Central Hotel, at 870 Seventh Avenue between 55th and 56th streets, that matured in November, the Journal said. Despite being current on the mortgage, the group was unable to refinance, and is asking the lender to accept a discounted payoff on the loan, according to real estate analytics firm Trepp, which also shows the mortgage as delinquent.

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  • alternatetext
    From left: Sheldon Solow and 9 West 57th Street
    Developer Sheldon Solow has obtained a $625 million loan on 9 West 57th Street from Deutsche Bank, which beat out AIG and JPMorgan Chase to provide financing for the trophy property, Bloomberg News reported.

    The loan refinances debt set to mature in February that Solow took out at the height of the bubble in 2007. About $55 billion of property loans are set to come due in 2012, and $19 billion of them were originated at the height of the bubble. But most of them will struggle to refinance, Standard & Poor’s predicted, as property values have decreased about 42 percent from the peak.

    In this case, several parties competed for Solow’s refinancing because of the location and prestige of the building, exemplifying the demand for prime buildings, Bloomberg said. … [more]

  • Even assets with healthy performance are struggling to refinance in this tough credit market, the Wall Street Journal reports.

    For instance, after three one-year extensions, the Westin New York in the Times at Times Square is looking to refinance its $232 million mortgage. And although the 863-room hotel, developed by Tishman Hotel and Realty, can report 90 percent occupancy, according to real estate analytics firm Trepp, the servicer transferred responsibility to a loan workout specialist this past Friday. … [more]

  • The Congressional Budget office has thrown cold water on a U.S. initiative to refinance loans held by millions of homeowners, and stated its support for Edward DeMarco, the Federal Housing Finance Agency acting chief, who has drawn criticism for his skepticism of the plan, the Financial Times reported.

    The initiative would effectively leave private investors with double in losses what borrowers would get in payment relief, researchers at the CBO found in a recent study.

    “The study recognises the enormous losses private investors would suffer in a transfer of wealth to borrowers,” said Joshua Rosner, a housing finance expert and managing director at independent research firm Graham Fisher & Co. … [more]

  • Federal Reserve Governor Elizabeth Duke is calling for a more aggressive approach to rescuing the housing market by allowing more homeowners to refinance and by converting some foreclosures into rental housing, the Wall Street Journal reported. “Clearly the market is not functioning as it should,” she said in a speech Thursday in Washington.
    Duke advised that policy makers should improve upon an already-existing White House initiative designed to facilitate more refinancing of loans guaranteed by government-supported mortgage firms Fannie Mae and Freddie Mac, the Journal said. Allowing more homeowners to take advantage of low interest rates would bolster the weak U.S. economic recovery, she said. … [more]

  • One of the Obama administration’s proposals for improving the housing market is allowing homeowners with federally-backed mortgages to refinance at the current, historically low rate. Christopher Mayer, a real estate finance and economics professor at Columbia University, told NPR the plan would work because it would offer middle-class homeowners the same advantage — the ability to get out from under debt and borrow less — that has helped many businesses become profitable. Though he acknowledges the damage it would do to bondholders, he explained that ultimately the entire country would be better off with what’s effectively a $70 billion tax cut for middle-income households. … [more]

  • Mortgage applications decreased 5 percent for the week ending July 22, according to weekly data from the Mortgage Bankers Association. Refinancing also decreased 5.5 percent from the previous week.
    The refinance share of mortgage activity decreased to 69.6 percent of total applications from 70.1 percent the previous week. The adjustable-rate mortgage share of activity increased to 6.1 percent from 5.8 percent of total applications from the previous week.
    Miranda Neubauer [more]

  • The appeal of a short-term loan

    May 20, 2011 01:33PM

    Could I refinance you into a seven-year fixed-rate mortgage at 2.99 percent? Or how about 10 or 15
    years fixed in the mid-3s?

    These may sound suspiciously like teaser quotes with tricks in the fine print, but they are in fact signs of
    an important shift under way among American homeowners: Not only have they been refinancing at a
    robust pace in recent weeks, but they’re ratcheting down on the remaining number of years they plan to
    pay on their mortgages. [more]

  • While most people who took out mortgages during the financial crisis
    got hit with high interest rates, an increasing number of these borrowers are now
    looking to refinance into lower-rate mortgages to save money, the New
    York Times reported. But for borrowers who may not want to start over
    with a 30-year loan, the solution might be to refinance into a 20-year
    loan. Rates on these mortgages are low enough that someone in the
    third year of a 30-year loan can shave years off the payment term
    without increasing the monthly payment much, if at all. By switching
    to a 20-year loan, borrowers would be able to pay off their mortgages
    sooner, while saving thousands of dollars in interest payments. [NYT]



  • An Upper East Side co-op board has managed to complete an $8.5 million refacing project, install $3 million in upgrades, and deposit $12 million into the board’s reserve fund — without raising the residents’ maintenance fee. While this sounds too good to be true, Habitat Magazine explained how the co-op board at 360 East 72nd Street refinanced its underlying mortgage to fund the approximately five-year project, which included numerous improvements, including work to the building’s chiller and elevators, on top of the brick refacing of the building’s exterior.

  • The rate of mortgage application filings dropped the week of Christmas and then stayed flat through the following week, according to the most recent Mortgage Bankers Association weekly survey. The week ending Dec. 25 saw a 22.8 percent decrease in the MBA index, which measures seasonally-adjusted loan application volume data. The following week, ending Jan. 1, the index stayed relatively the same, increasing just .5 percent. Refinancing accounted for nearly 70 percent of all mortgage activity for both weeks, according to the report. TRD