Melissa Cohn Selected to be "New York Times" Panelist

Melissa Cohn, owner and CEO of The Manhattan Mortgage Company, was selected by "The New York Times" to be a panelist on the topic "New York Real Estate: Are There Any Deals Left?" part of the ongoing "New York Times" Speaker Series program.

The event, held on June 10 in the theater of Fifth Avenue's Lord & Taylor, was moderated by Trish Hall, editor of the new Sunday Real Estate section and also included Melvyn H. Blum (President of Vornado Development), Pamela Liebman (president and CEO of The Corcoran Group) and Randall J. Katchis (managing principal and co-owner of Julia B. Fee Real Estate) as panelists.

After Mr. Blum explained that a "bargain" is in the eye of the beholder, emphasizing that one has to be ready to act quickly, and be prepared to "perform" financially, once a property is found. ..and Ms. Liebman recommended that bargain-seekers check out the Upper East Side (especially First, Second and York Avenues), the Far West Side, Washington Heights and the Wall Street area in Manhattan, Long Island City in Queens, Carroll Gardens, Cobble Hill and Fort Greene in Brooklyn, and Jersey City in New Jersey for good deals, Ms. Cohn was asked how rising interest rates might impact the homebuying process.

She said that people shouldn't worry about the rates because they are still historically low...and there are special loan products that can help offset the increase. "Banks are getting more creative than they were ten years ago", explained Ms. Cohn. "Now you can get a 40-year fixed loan, instead of a 30-year fixed, and lower your payments by 10%. For each 1% rise in rates, typically you lose 10% of your borrowing power...but with a product like a 40-year fixed, you get it back."

Ms. Cohn also mentioned Interest Only loans, which give the borrower 23% more purchasing power than a traditional loan, emphasizing that there is a risk with interest only loans if you're not going to remain in your property for at least three to five years. "People do worry too much. Real estate values are still stable because there isn't enough inventory to support a dramatic drop in prices." Ms. Cohn also said that she "sees the glass as half-full", explaining that Manhattan Mortgage "was just as active in an 8% rate environment as we are with rates at 5.5%". Ms.Cohn also informed the audience that some banks will allow a borrower to lock in a rate for up to twelve month. "In that case, you're protected."

Randy Katchis said that it helps "to have vision" and be "willing to take risks". Although Westchester doesn't have a lot of land left and has become quite densely populated, there are still bargains to be had. He mentioned Chappaqua, Ossining, Katonah, Yonkers (and its waterfront renewal) and New Rochelle as very popular communities now...in spite of the hourlong commute. As the discussion started to wrap up, all of the panelists strongly agreed that it's important to work with an excellent broker...someone who is knowledgeable about every aspect of the desired property, in short "an educated broker" and that while a potential homebuyer can gather all kinds of information, there is a huge difference between "data" and "detailed information provided by someone who really knows the property and the area".

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