If they take out $100,000, the new loan is for $500,000, minus whatever principal they had paid down on the original mortgage.
The co-op's financing is sound and the original mortgage is almost paid off.
The original mortgage was paid off and the balance invested in the business.
By 1984 all that remained on the original mortgage was $39,000.
Before taking any steps it is advisable to visit the lender of the original mortgage.
A $100,000 loan would cover the $91,000 balance on the original mortgage, and provide extra cash for home improvements.
The prime reason, he said, is because the original mortgage may be needed if the lien against the property has not been recorded as removed.
Bank A then subsequently lends a second advance to the borrower, relying on its original mortgage.
For those who want to borrow more than the original mortgage plus improvements today, there are big changes in store.
The original mortgage for the new building had been $350,000, and by 1982 the balance remaining was $42,000.
