J Condo: Selling, On Time?

1.

hello, first-time poster here... i received that letter from J Condo few days ago as well. in addition to the confirmation that it will most likely completed late spring or summer (which, btw, was what they said as well last Oct when i bought), it also suggested that we contact our lenders in preparation for the closing next year. i just wanted to ask the other, more knowledgeable Curbed readers whether i should start that process now. i know that there's some sort of one-year interest rate lock-down option, where i can lock down the current interest rate. so would this be the smartest thing to do? and if anyone has any suggestions for a good lenders/banks to do this through, i'd love to hear that as well. thanks!

2.

With all due respect, if anyone here says they know if you should lock down your interest rate or not, don't listen to them. If they could predict the future that well, they'd use that ability to make themselves rich beyond imagination.

As for lenders, I've used HSBC and Chase and found both have been good about moving things along. IMO, a lot of lenders fall apart when it comes to the support functions but these two worked for me. I admit that can just be a matter of who you get to work with, though.

3.

I used Chase for my mortgage and it was and is pretty good. I don't know how you can lock the rate beyond 90 days. You can all several major banks and ask about it. My guess would be that the long term mortgage rates will definitely be higher next year. They may go down a bit in the near term, but the trend (large budget deficits, higher interest rates, inflation and high energy costs) point to higher mortgage rates in the future.

4.

Wells Fargo is also very good, particularly with new construction financing -- and they do have good interest rate lock-in programs at no cost for new construction. Regardless of whether you decide to do it or not (and personally I'd go for it, as the Fed announced at its last meeting that they might not yet be done w. rate increases even though the discount rate is now 5%, higher than it's been in years) it's worth looking into.

5.

Omigod. A COFFEE BAR!! A BOOKSTORE!!! Wow is BKLYN an exciting nabe or WHAT???!!!11

6.

I can't predict the future, but if you can get a lender to commit to a one-year lock-down option at current rates I would probably take it. I'm not sure that exists, though. When I got my mortgage there was only a 60-day lock down available and I had to renegotiate terms when the closing was delayed. In any case, you should be speaking to a mortgage broker who can help find the best loan terms for you.

7.

im a sarcastic bitch..hahahha aint i witty

8.

Larry - you're not.

9.

I would NOT recommend doing a lockdown that far in advance in new construction; if your closing is delayed for any reason you could end up being forced to pay fees totalling hundreds of dollars per day in order to maintain your rate, not to mention the possibility of having to start from scratch, file again for a new mortgage and risk having to pay fees to the developer for closing late.

The reality is, any lawyer or mortgage broker will warn you that the majority of new construction delays closing dates by months or in some cases even more. Wait until they give you a real date to finance!

10.

just assume there will be delays. always always late. my apt. was delivered about a year after the promise date, my friends 6 months, my other friend 4 months....i used a mortgage broker which helped a lot because of all the delays. good luck!

11.

#1 - J Condo has partnered with a Wells Fargo broker offering a special 18 month lock. The length of the lock is great and gives you extra protection from constuction delays, however, I found the lock fee's to be high (1.5 points I believe... with .5 returned to you at closing). I've been talking to another Wells Fargo guy who offers a 1 year lock under a special constuction program. His fee's are more reasonable (1 point upfront and you are guaranteed to get back at least .5 point at closing). The risk there like any other lock program is that you must close before the lock period is up to avoid fee's (and get your .5 point return). I will probably lock for peace of mind, but I'm waiting as long as possible to give myself some extra cushion time. One added benefit to most extended lock programs is the option to "float down" your locked rate if the rates go lower than when you locked. You are typically allowed to float down one time and it must be 60 days before closing. Overall, just do your homework and talk to as many brokers as possible. Each one may offer a different program... even within the same banking institution. Each branch runs their businesss differently. Best of luck and here's to hoping the rates don't soar too high!

12.

Has anyone heard if there will be a movie theatre opening up in DUMBO ?

13.

Long term rate locks are available from most lenders. But you will pay for the privilege. No one has a crystal ball. Are you a gambler who wants to watch the rates increase and decrease or do you want to play it safe and know what your payments will be NOW? That's it in a nutshell. Don't just go with the lender that the building is steering you to. Shop around. My company has beat the builder's company many times. We were also much better on title and closing fees. Don't get sucked in. If you want me to take a look at your loan, go to my website and fill in an application. Put jcondo in the comments area and I will let you know what we can do for you...no strings attached. Good luck with your purchase!