I understand how buying a condo or a house works, but not a co-op? What does it mean that you are buying shares of the company instead? what happens at the end of your mortgage term?
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A coop is a corporation that owns assets (usually the building and the land underneath, or sometimes just the building). By buying shares in the corporation, you become entitled to use a portion of those assets, that usually corresponds to a unit in a building (but can be other things too). You mortgage those shares in return for money (to pay for them) and pay the loan to the bank. Once you pay off the loan, you own the shares outright.
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