Post closing liquidity

[BGreen]

When reviewing a REBNY sheet and calculating the post closing liquidity, do you first subtract the down payment from the existing liquidity then divide by the monthly mortgage and Maintanence?

[lower_nyc]

When reviewing a REBNY sheet and calculating the post closing liquidity, do you first subtract the down payment from the existing liquidity then divide by the monthly mortgage and Maintanence?

Yes! Post-closing liquidity is designed to show how much in liquid assets you have after closing (i.e. after you've paid full down payment, closing costs, etc.)

Months of Post Closing Liquidity = (Liquid Assets* - Down Payment - Estimated Closing Costs) / (Monthly Mortgage & Maintenance)

*NOTE: The definition of 'Liquid Assets' varies by co-op (or condo) building. Some buildings, for example, will totally exclude all 401K balances while others will allow you to include some or all of them. The easiest way to confirm is by calling and speaking with the transfer agent at the managing agent for the building.