Credit Lines are a floating-rate credit facility that can stand at the ready to provide cash which may be needed for capital improvements years after a mortgage closing. We most often place credit lines along with underlying mortgages for co-op corporations, giving them a way to handle unforeseen expenses in the future.

Pricing ranges from 175 - 250 basis points above LIBOR, or .5% to 1% above the Prime rate. One major advantage of an unsecured credit line in New York is the ability to avoid mortgage-recording tax, which is 2.75% in New York City for amounts greater than $500,000. Another advantage is the flexibility of being able to pay down a credit line without any prepayment penalty.

See a Credit Line example:

$10,000,000 unsecured line of credit closed for a co-op on Manhattan's Upper West Side